Computer maker Dell buys out computer data and storage firm EMC Corp. for $67 billion. Dell’s acquisition of EMC makes this the biggest deal in technology history.
Dell hopes this acquisition makes them more competitive in an ever changing and more competitive field. They hope EMC will help them expand Dell’s product lineup to get more customers. Dell will pay $24.05 a share in cash. This deal includes shares in VMare Inc. That’s nine dollars per EMC share. EMC shares are rising in the wake of this historic news. Both companies will be under the leadership of CEO Micheal Dell. This will combine EMC’s expertise in storage data devices and Dell’s expertise in servers. EMC was founded in 1979, and went public in 1986. It’s headquarters are in Hopkinton, MA, a town about 30 miles west of Boston, and where the annual Boston Marathon begins. But in recent years, EMC has hit challenging times. Their storage model demand has been in decline. They’ve tried to focus on newer products and materials. But apparently, the focus isn’t enough since it’s hardly increased profit growth. Before this merger, their growth? increased 3%, their lowest growth margins since 2009, the height of the Great Recession.
Despite being one of the leading computer makers in the world, they’ve also seen better days. Demand for PCs has fallen. That is Dell’s bread and butter. In Q3 2015, their PC shipments declined 7.7 percent; that’s just in one quarter! The only reason they were able to make a profit and stay ahead of the PC game is because other PC firms are enduring the same struggle. The merger between Dell and EMC should be finalized by summer 2016. What will this merge mean for data storage? What will it mean for PCs? What will it mean for newer projects Dell is working on? But the biggest question of all is what does this mean for EMC jobs? Are they in danger?