4 ms·
2.1B is the same price EMC paid to take RSA private in 2006. Zero increase in value in 13 years... https://corporate.delltechnologies.com/en-us/newsroom/announ
by pge 7y ago
2.1B is the same price EMC paid to take RSA private in 2006. Zero increase in value in 13 years...
https://corporate.delltechnologies.com/en-us/newsroom/announcements/2006/09/09182006-4605.htm https://corporate.delltechnologies.com/en-us/newsroom/announ...
- Traster 7y agoReminds me of Intel doing exactly the same thing, took McAfee from a $7.6Bn valuation in 2010 to a $4.2Bn valuation in 2017.
- NullPrefix 7y agoIt's not zero. 2.1B was in 2006 dollars. 14 years of cumulative inflation would add up to almost 2.7B in 2020 dollars.
- Spooky23 7y agoRSA is a declining platform. They are getting their clock cleaned by many competitors in all segments.
- vijayr02 7y agoI'm not blind to the flaws of private equity, but just wanted to make a point here: there's very little likelihood that the business sold in 2020 is the same that was acquired in 2006. Companies change and the private equity sponsor may have: 1. Spun off businesses that made a profit 2. Paid out dividends that reduced their cost basis Again, I don't know the specifics of the EMC deal and maybe very well they destroyed value, my point is that this is not as simple as comparing numbers at two points in time.
- threedots 7y agoChange in EV is not an appropriate metric to measure PE returns, you need to take into account recaps, dividends, loan interest and whatever other weird stuff took place.
- deleted 7y ago[deleted]