EMC's federation, as far as support is concerned...sucks. I'm sure that separating will make just as big of a mess.
Activist investor Elliott Management, the holder of a billion dollars' worth of Hopkinton shares, has publicly called for a VMware sale in a letter to EMC's CEO and board. Its release has been nicely timed to closely follow on from HP's decision to split itself into an printer and PC company on the one hand (HP Inc) and a …
So lets be clear. VMWare is a core component of Pivotal which is EMC's 'Green Stack'.
So it would mean spinning off Pivotal from EMC, where Pivotal is a separately run company already.
Take out VMWare, you weaken the stack and you end up losing money.
Spin off Pivotal, and you have even less of a reason to look at it compared to the other Hadoop distros.
(Not that anyone is taking Pivotal seriously... )
I'm of the opinion that if I owned a profitable company, I would rather rot in hell than go public and have to put up with the likes of Elliot and Icahn. Too many companies see the dollar signs of an IPO and give their control to the investors who eventually bit them in the naughty bits. I'm no fan of Zuck but he seems to be doing it right for now (stockwise) but sooner or later, the activists will come for his head.
Disclosure - EMC employee (Europe)
As usual, these American capitalist aggressors pay no heed to any employee of the companies they try to rape & pillage. It seems the stock price is the only piece of measurable value they are interested in. It doesn't seem to matter about the future of anyone working in such targets. I'd suggest physical retaliation, but these bully boys are only greedily interested in the commission they make on the back of their "investors". What a sorry sad state of the world .....
It's much, much worse than that. They're not interested in the *long term* stock price and viability. They just want to make a quick buck at the expense of long-term viability.
Woohoo, you own 2% of EMC shares Elliott. You know what, when you own 51%, you get to call the shots. As it is, this seems to be an extreme case of "wag the dog".
You think you can do better investing that money elsewhere and think other companies are better run? Feel free to sell those shares and invest them elsewhere.
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