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Dell Will Issue a Lot of Not-Quite-Stock to Pay for EMC
- tw04 11y ago>Theory 1 is that Dell doesn't want to own VMware. On this theory, Dell and EMC belong together, but VMware belongs apart, as its own separate company. I am unable to evaluate that theory because I honestly cannot figure out what any of these companies do. >Anyway, on this theory, the right thing to do would be for Dell to just buy EMC, spin off (some or all of) the VMware stake to EMC's shareholders (as Elliott demanded last year) and keep the rest. If you have no idea what these companies do, you probably shouldn't comment on what you think they should do. It just makes you look like an idiot commenting on a situation you openly admit you're ignorant about. You literally have no basis for your comments other than citing someone else's thoughts (who also has no idea what they do). Just don't - this is why everyone hates Wall Street.
- PhantomGremlin 11y agoIf you have no idea what these companies do, you probably shouldn't comment on what you think they should do. No, your viewpoint is too narrow. I love Matt Levine. He has the incredible knack of being able to explain complex financial machinations in simple, clear language. I also know what Dell, VMware, and EMC do. So, when I combine Matt's writing with my own knowledge ---> voila ---> insight. If this it what finally gets Joe Tucci out of EMC, then it's probably a good thing for everyone involved. Not that I expect Michael Dell to be better. I dunno, maybe Gelsinger is the answer, but I haven't followed him closely enough to know. I think I've read enough that, if I owned EMC or VMW, I'd be hitting the sell button right about now. Judging from the behavior of both stocks in the last few days, lots of people agree with me.