Joe, how about “Hawaiian shirt Fridays?”
Data Domain’s board is has rejected EMC’s all cash offer in favor of NetApp’s enhanced cash + stock offer. But shareholders get the ultimate say.
EMC is continuing with its tender offer for outstanding stock at $30/share through June 29. If it gets a majority of the ~62 million shares, it’s all over.
Except for the fallout.
No non-competes in California
While everyone has been polite so far, EMC’s hostile offer will turn up the heat. And the all cash offer and EMC’s stagnant stock price means that DD employees have to consider their options – which, BTW, are usually fully vested in event of an acquisition.
NetApp has nothing to lose by formally pushing the anti-trust issues. Engineers are getting calls from old friends. Business plans are being sketched on cocktail napkins at Birk’s.
Saw VI – “DDUP, are you grateful to be alive now?”
EMC could end up with a shell company: some patents, products and a brand, but much of the newly-affluent talent gone. And maybe they can earn their cash back in the next few years before something better comes along.
The StorageMojo take
EMC has irritated more folks than the occasional blogger. Their sales-driven culture doesn’t mesh well with Valley technophiles. And their stock price is a turn-off.
Emotions will cool. We’ll have the answer by month’s end – if EMC doesn’t extend their offer. There’s been so much turnover in DDUP stock in the last 2 weeks that it’s hard to know – for outsiders – who still owns what.
Financial investors will take EMC’s money if they haven’t already sold. People who see the chance to rebuild NetApp’s fortunes – and stock price – haven’t.
Hostile takeovers have a poor record in high-tech. But that’s a risk Tucci is willing to take.
Courteous comments welcome, of course. StorageMojo will be returning to its irregularly unscheduled programming shortly.