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back to article Deja vMware: 'Virty biz to buy its parent EMC' rumor just won't die

Rumors that VMware will buy EMC – which owns 80 per cent of VMware – are back from the dead. And just in time for VMworld 2015, to be held next week in San Francisco. The last time around this particular block, we heard that EMC could buy up the 20 per cent of VMware it didn't own – or VMware could buy EMC in a so-called …

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  1. Anonymous Coward
    Anonymous Coward

    There's a reason why Wall Street wants to see this deal

    They'll make a tidy commission from setting it up.

    3 0 Reply
  2. Diskcrash

    Stupid, greedy, short term speculators

    These investors are not investors, they are looking for a way to take any money out of a business that isn't nailed down and then run.

    Emc is making money, VMware is making money so what is the problem? Oh, if one or both load up on debt then the "investors" can fill their pockets and walk away leaving a company in a weaker position for the long term.

    Capitalism is all well and good and basically better than the alternatives but that is no excuse to let the equivalent of Russian oligarchs pillage the markets.

    Stupid idea.

    1 1 Reply
    1. RollTide14
      Reply Icon

      Re: Stupid, greedy, short term speculators

      Yea except that money they are making isn't being transferred back to shareholders. Past 5 years has seen basically no growth in EMC stock price (maybe like 10-15% after yesterday's 7% gain) while the S&P has doubled in that time frame.

      70% of EMCs market cap is vmware. You take that out of the picture then EMC basically has the same market cap as Netapp (a company that would do triple netapps revenue in the same space with better long term staying power should not be valued the same)

      Also, EMC needs to trim their sales force. When an Isilon node gets sold 3 separate sales reps, engineers and frontline managers (core, Isilon, BRS) get paid...that' needs restructuring

      1 0 Reply
      1. Anonymous Coward
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        Anonymous Coward

        Re: Stupid, greedy, short term speculators

        This is spot on. EMC is ripe for disruption. You take VMware out and it's a hollow shell of a legacy infrastructure company and not worth much.

        0 0 Reply

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