EMC Not Yet Entertaining Idea of Selling VMware Stakes
When asked if there is a chance that EMC would sell stakes of VMware, EMC CEO Joe Tucci’s response is a resounding “No Way!” The issue of letting VMware go surfaced and was discussed during the company’s recent investment conference in New York. Even if the interested party would offer 50% premium, as far as he is concerned, it is still a negative.
To support this, Tucci went on to say that EMC is not after big acquisitions and expanding their market at the moment. What they are focusing on right now is to strengthen their core ventures and existing businesses. Increasing their investments in Big Data is a good example. He said, “We’re in really good areas. I’d rather get more depth now than get more breadth.”
There are also reports that mentioned of an EMC takeover. Tucci said that the stakeholders will still have a bigger voice when it comes to decision-making regarding this. However, he feels that there will be few companies that can acquire them wholly saying, “We are pretty close to $60 billion now in market cap, so just by pure size, there is not a lot of companies. So it’s possible, and I’m not — if it makes sense for the shareholders, there is not a bone in my body that’ll block that. But I really believe we got to play our own game.”
EMC’s flagship product lineup will never look the same without VMware. They have teamed up in great projects the past years and have rocked the tech community recently with various upgrades and updates which were highlighted in the EMC World 2011. EMC and VMware were tapped by NYSE for their cloud platform within the financial sector. VMware opened the month of June with the acquisition of SocialCast to boost their presence within the social networking sphere. They also surprisingly outbid Google for a prized Silicon Valley office space.
EMC owns roughly 80% of VMware, which is one of the most promising organizations within the cloud computing platform. These potential and inimitable successes since its inception in 1998 are what EMC could not easily let go of, even with attractive offers. Who knows, with the current pace of VMware’s growth, it could be worth more than anyone can imagine in a few year’s time.
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