back to article Tucci’s terrible dilemma: Unlock EMC value without destroying the Federation

War could break out in EMC's investor ranks any day now as the standstill agreement between EMC's board and activist investor Elliott Management runs out this month. Elliott wants the federation structure or status changed so that hidden investor value inside EMC can be unlocked for investors' benefit. This means the potential …

  1. Doctor Syntax Silver badge

    If the likes of Elliott are so good at running businesses like EMC why don't they set up such businesses in the first place?

    1. SnapperHead

      They do!

      They do run a business, it is called "Elliot Management" and they work to maximize shareholder value in companies that are hold it back.

      1. Doctor Syntax Silver badge

        Re: They do!

        Elliott Management isn't a business like EMC. EMC makes things.

      2. Anonymous Coward
        Anonymous Coward

        Re: They do!

        Shareholder value = short term profit

        Companies that foolishly hold back short term activist investor profit in favour of long term development and growth that favours staff, partner companies, and companies - effectively everyone else except Elliot.

        Screw activist investors, they are a cancer on business, parasitically trying to break up or damage large companies to get their pound of flesh

  2. hatti

    Bzzzt.

    Picture reminds me of Jeff Goldblum.

    I will fetch my warm woolen front buttoned outer garment.

  3. luis river

    fly flight

    In general the life average of a fly is from 15 to 25 days, I believe that will be necessary to wait more to hear something significant in the room of meetings of EMC, it can that the 1 November (division HP) something interesting is heard.

  4. Anonymous Coward
    Anonymous Coward

    Pointless

    I'm all for running through the "what if" scenarios but let's take a step back and think about what makes common sense. EMC is a company who's fundamental purpose is, in order of priority: 1) to make/provide things that customers want, and 2) make money doing it. Ellliot's sole purpose is to make more money, period. Nothing else matters. This is where the basic disconnect lies.

    If EMC's sacrifices the ability to please customers, make their lives easier, provide a better solution, etc...at the expense of making SLIGHTLY MORE money, then eventually customers will go elsewhere. If customers go elsewhere EMC over time will falter.

    EMC knows this and knows that if they become anything but a customer-focused company, customers will falter and therefore they will falter. Running through all the crazy scenarios where EMC can extract a little more money for the sake of pleasing a ~1% investor with no real interest in the customer, while fun, is a pointless waste of time. That doesn't mean EMC can't become more efficient, but the customer rules, not the activist investor.

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