Dell Inc. has bought EMC Corporation for $67 million, this deal is beneficial for both companies. EMC Corp’s data storing technology can improve Dell’s standing as the “world’s No.3 computer maker.” This deal is beneficial to EMC since EMC needs a broader field to expand their company.
The market has reacted to the news positively with EMC shares increasing 1.4%. Dell has provided EMC with a 60 days “go-shop” so EMC can break the contract with Dell with a lower payment.
By purchasing EMC Corp under Dell, Dell is building its point of difference to differentiate itself from other competitors in the same market. With Dell working with EMC, they are building a new ladder instead of trying to climb to the top of the old ladder which they are placed in third. The figure reflected that the market did not disagree with the decision Dell and EMC made.
From EMC’s point of view, they need a broader platform to expand their brand and market. Going under Dell can bring them that new ladder. EMC and Dell has created a possible “win-win” situation.
Dell is very respectful to EMC; Dell offers EMC to work with them and not letting EMC work under Dell. Dell is not treating EMC as a department but as a partner.
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