Dell managed to regain control of his namesake company back in 2013 with a $25 billion investment. At double that amount, EMC may prove a tough pill to swallow. No one knows the pains of acquiring a company valued over twice of their own than AMD, who suffered massive issues in the wake of their relatively miniscule $5.6 billion takeover of ATI. At double its value, the EMC purchase will rely heavily on bonds, something that may be risky given the current financial situation.
The move to acquire Dell does make a whole lot of sense as firm pivots away from a consumer focus and towards the more lucrative enterprise market. EMC either owns or holds a stake in a wide range of enterprise business with names like VMware, RSA Security, Iomega and Syncplicity. It will be interesting to see how these two tech giants merge and manage their huge portfolio.
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