The merger and negotiation between Hp and EMC broke down. EMC split or accelerated!

According to the latest Reuters report, people familiar with the matter revealed that HP has concluded the merger negotiations with EMC, and HP will announce the final results immediately. After several months of negotiations, the merger of the two companies finally broke through. Big Data online has previously analyzed HP's and EMC's product lines. The long and overlapping product lines between the two parties are not conducive to the integration after the merger (for details, see the analysis article before the big data online: figure 1 details how EMC and HP products are compared and combined or create a nightmare! ). Today, HP has concluded its merger negotiations with EMC, disappointing EMC investors, and the investors may further promote the separation of the EMC Federation.

In the past few months, EMC investors, Elliot management, have repeatedly asked EMC to split and sell or seek merger due to unsatisfactory return on investment. The investment company has repeatedly called on EMC to sell quality assets such as VMware. VMware's current market value is close to $50 billion, while EMC's acquisition of VMware costs only $0.7 billion, from an investment perspective, the current selection of high sales is definitely the best time to cash out, which puts EMC management under great pressure and EMC has always wanted to build a federated model to compete in the market.

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Figure 1: EMC and HP product line comparison chart, with severe overlap in the storage field.

According to people familiar with the matter, Hewlett-Packard and EMC were in a private State until executives of the two companies were still negotiating to final the deal last week, but eventually ended up in a deadlock due to price issues. Now, hp cfo Cathie lesjak once said in a telephone conference called by HP to split up that there was "material information that should not be made public", that is, the merger negotiation, and HP also suspended its share repurchase plan.

The current IT industry split trend is obvious, and eBay, Symantec, and HP have joined the split. The merger negotiations between Hp and EMC broke down, or encouraged radical investors such as Eliot capital to further promote EMC's splitting, the reason why EMC is able to maintain the federal model is that Joe Tucci, Chairman of the Board, is about to retire in May.

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The merger and negotiation between Hp and EMC broke down. EMC split or accelerated!