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On October 12, 2015, [[Dell Inc.]] announced its intent to acquire EMC Corporation in a cash-and-stock deal valued at $67 billion ({{Inflation|index=US-GDP|value=67000000000|start_year=2015|r=-7|fmt=eq}}), which has been considered the largest-ever acquisition in the technology sector.<ref>{{Cite news|title = Dell to Buy EMC in Deal Worth About $67 Billion|url = https://www.bloomberg.com/news/articles/2015-10-12/dell-to-acquire-emc-for-67-billion-to-add-data-storage-devices|newspaper = Bloomberg|access-date = October 12, 2015|first1 = Brian|last1 = Womack|first2 = Dina|last2 = Bass| date=October 12, 2015 }}</ref><ref name="bbc-dellemc" /> As part of the acquisition, Dell would take over EMC's 81% stake in the cloud-computing and virtualization company [[VMware]].<ref name=Dell-EMC>{{cite web |last1=Gara |first1=Antonie |title=Deal Of The Century: How Michael Dell Turned His Declining PC Business Into A $40 Billion Windfall |url=https://www.forbes.com/sites/antoinegara/2021/08/03/deal-of-the-century-how-michael-dell-turned-his-declining-pc-business-into-40-billion-windfall/?sh=2f3512745c2a |website=Forbes |access-date=November 22, 2021}}</ref> This would combine Dell's enterprise server, personal computer, and mobile businesses with EMC's enterprise storage business in a significant Vertical merger of IT giants. Dell would pay $24.05 per share of EMC, and $9.05 per share of [[tracking stock]] in [[VMware]].<ref name=wsj-emcdell>{{cite news|title=Dell to Buy EMC for $67 Billion|url=https://www.wsj.com/articles/dell-to-buy-emc-for-67-billion-1444649012|access-date=October 12, 2015|work=The Wall Street Journal|url-access=subscription}}</ref><ref name=nyt-emcdell>{{cite news|title=In Takeover of EMC, Dell Makes Ambitious Bet|url=https://www.nytimes.com/2015/10/12/business/dealbook/dell-to-buy-emc-for-65-billion-a-record-takeover-in-technology.html|access-date=October 12, 2015|work=The New York Times|date=October 12, 2015 }}</ref><ref name=bbc-dellemc>{{cite news|title=Dell agrees $67bn EMC takeover|url=https://www.bbc.com/news/business-34505553 |date=October 12, 2015 |access-date=October 12, 2015|work=BBC News}}</ref>
On October 12, 2015, [[Dell Inc.]] announced its intent to acquire EMC Corporation in a cash-and-stock deal valued at $67 billion ({{Inflation|index=US-GDP|value=67000000000|start_year=2015|r=-7|fmt=eq}}), which has been considered the largest-ever acquisition in the technology sector.<ref>{{Cite news|title = Dell to Buy EMC in Deal Worth About $67 Billion|url = https://www.bloomberg.com/news/articles/2015-10-12/dell-to-acquire-emc-for-67-billion-to-add-data-storage-devices|newspaper = Bloomberg|access-date = October 12, 2015|first1 = Brian|last1 = Womack|first2 = Dina|last2 = Bass| date=October 12, 2015 }}</ref><ref name="bbc-dellemc" /> As part of the acquisition, Dell would take over EMC's 81% stake in the cloud-computing and virtualization company [[VMware]].<ref name=Dell-EMC>{{cite web |last1=Gara |first1=Antonie |title=Deal Of The Century: How Michael Dell Turned His Declining PC Business Into A $40 Billion Windfall |url=https://www.forbes.com/sites/antoinegara/2021/08/03/deal-of-the-century-how-michael-dell-turned-his-declining-pc-business-into-40-billion-windfall/?sh=2f3512745c2a |website=Forbes |access-date=November 22, 2021}}</ref> This would combine Dell's enterprise server, personal computer, and mobile businesses with EMC's enterprise storage business in a significant Vertical merger of IT giants. Dell would pay $24.05 per share of EMC, and $9.05 per share of [[tracking stock]] in [[VMware]].<ref name=wsj-emcdell>{{cite news|title=Dell to Buy EMC for $67 Billion|url=https://www.wsj.com/articles/dell-to-buy-emc-for-67-billion-1444649012|access-date=October 12, 2015|work=The Wall Street Journal|url-access=subscription}}</ref><ref name=nyt-emcdell>{{cite news|title=In Takeover of EMC, Dell Makes Ambitious Bet|url=https://www.nytimes.com/2015/10/12/business/dealbook/dell-to-buy-emc-for-65-billion-a-record-takeover-in-technology.html|access-date=October 12, 2015|work=The New York Times|date=October 12, 2015 }}</ref><ref name=bbc-dellemc>{{cite news|title=Dell agrees $67bn EMC takeover|url=https://www.bbc.com/news/business-34505553 |date=October 12, 2015 |access-date=October 12, 2015|work=BBC News}}</ref>


The announcement came two years after Dell Inc. returned to private ownership, claiming that it faced bleak prospects and would need several years out of the public eye to rebuild its business.<ref name=WSJ-20130329>{{cite news | newspaper = [[The Wall Street Journal]] | title = Dell Makes Case to Go Private in Grim Filing | url = https://www.wsj.com/articles/SB10001424127887323501004578390692268605644 | date = March 29, 2013}}</ref> It was thought that the company's value had roughly doubled since then.<ref name=WSJ-2015-10-12>{{cite news | newspaper = The Wall Street Journal | author = David Benoit| title = Dell's Value and the 'Falling Knife' | url = http://blogs.wsj.com/moneybeat/2015/10/12/dells-value-and-the-falling-knife/ | date = October 12, 2015}}</ref> EMC was being pressured by [[Elliott Management Corporation|Elliott Management]], a hedge fund holding 2.2% of EMC's stock, to reorganize their unusual "Federation" structure, in which EMC's divisions were effectively being run as independent companies. Elliott argued<ref name=BusinessWire-2014-10-08>{{cite web | url = http://www.businesswire.com/news/home/20141008005668/en/Elliott-Management-Sends-Letter-Board-Directors-EMC# | title = Elliott Management Sends Letter to Board of Directors of EMC Corporation |website=[[Business Wire|BusinessWire]] |date=October 8, 2014}}</ref> this structure deeply undervalued EMC's core "EMC II" data storage business, and that increasing competition between EMC II and VMware products was confusing the market and hindering both companies. ''[[The Wall Street Journal]]'' estimated that in 2014 Dell had revenue of $27.3 billion ({{Inflation|index=US-GDP|value=27300000000|start_year=2014|r=-7|fmt=eq}}) from personal computers and $8.9 billion from servers, while EMC had $16.5 billion from EMC II, $1 billion from [[RSA Security]], $6 billion from VMware, and $230 million from [[Pivotal Software]].<ref name=WSJ-2015-10-13>{{cite news | newspaper = The Wall Street Journal | title = EMC Takeover Marks Return of Michael Dell | url = https://www.wsj.com/articles/dell-to-buy-emc-for-67-billion-1444649012 | date = October 13, 2015}}</ref> EMC owns around 80 percent of the stock of VMware.<ref name=FT-Lex-2015-10-12>{{cite news | title = Dell-EMC: The empty shop | newspaper =[[Financial Times]] | date = October 12, 2015 | url = http://www.ft.com/cms/s/3/abfd601e-7102-11e5-ad6d-f4ed76f0900a.html}}</ref> The proposed acquisition will maintain VMware as a separate company, held via a new [[tracking stock]], while the other parts of EMC will be rolled into Dell.<ref name=FT-2015-10-12>{{cite news | title = Dell agrees $63bn acquisition of EMC | newspaper =Financial Times | date = October 12, 2015 | url = http://www.ft.com/cms/s/0/170fa5f2-708a-11e5-9b9e-690fdae72044.html}}</ref> Once the acquisition closes Dell will again publish quarterly financial results, having ceased these on going private in 2013.<ref>{{cite news | url = http://washpost.bloomberg.com/Story?docId=1376-NWLBRI6K50YD01-7BPSHOJ09P7U1SQJVJQUC9CNAI | newspaper = [[The Washington Post]] | author = Brian Womack | date = October 21, 2015 | title = Dell CFO Reluctantly Accepts Public Disclosures With EMC Deal | access-date = February 23, 2018 | archive-url = https://web.archive.org/web/20170621093312/http://washpost.bloomberg.com/Story?docId=1376-NWLBRI6K50YD01-7BPSHOJ09P7U1SQJVJQUC9CNAI | archive-date = June 21, 2017 |url-status=dead}}</ref>
The announcement came two years after Dell Inc. returned to private ownership, claiming that it faced bleak prospects and would need several years out of the public eye to rebuild its business.<ref name=WSJ-20130329>{{cite news | newspaper = The Wall Street Journal | title = Dell Makes Case to Go Private in Grim Filing | url = https://www.wsj.com/articles/SB10001424127887323501004578390692268605644 | date = March 29, 2013}}</ref> It was thought that the company's value had roughly doubled since then.<ref name=WSJ-2015-10-12>{{cite news | newspaper = The Wall Street Journal | author = David Benoit| title = Dell's Value and the 'Falling Knife' | url = http://blogs.wsj.com/moneybeat/2015/10/12/dells-value-and-the-falling-knife/ | date = October 12, 2015}}</ref> EMC was being pressured by [[Elliott Management Corporation|Elliott Management]], a hedge fund holding 2.2% of EMC's stock, to reorganize their unusual "Federation" structure, in which EMC's divisions were effectively being run as independent companies. Elliott argued<ref name=BusinessWire-2014-10-08>{{cite web | url = http://www.businesswire.com/news/home/20141008005668/en/Elliott-Management-Sends-Letter-Board-Directors-EMC# | title = Elliott Management Sends Letter to Board of Directors of EMC Corporation |website=[[Business Wire|BusinessWire]] |date=October 8, 2014}}</ref> this structure deeply undervalued EMC's core "EMC II" data storage business, and that increasing competition between EMC II and VMware products was confusing the market and hindering both companies. ''The Wall Street Journal'' estimated that in 2014 Dell had revenue of $27.3 billion ({{Inflation|index=US-GDP|value=27300000000|start_year=2014|r=-7|fmt=eq}}) from personal computers and $8.9 billion from servers, while EMC had $16.5 billion from EMC II, $1 billion from [[RSA Security]], $6 billion from VMware, and $230 million from [[Pivotal Software]].<ref name=WSJ-2015-10-13>{{cite news | newspaper = The Wall Street Journal | title = EMC Takeover Marks Return of Michael Dell | url = https://www.wsj.com/articles/dell-to-buy-emc-for-67-billion-1444649012 | date = October 13, 2015}}</ref> EMC owns around 80 percent of the stock of VMware.<ref name=FT-Lex-2015-10-12>{{cite news | title = Dell-EMC: The empty shop | newspaper =[[Financial Times]] | date = October 12, 2015 | url = http://www.ft.com/cms/s/3/abfd601e-7102-11e5-ad6d-f4ed76f0900a.html}}</ref> The proposed acquisition will maintain VMware as a separate company, held via a new [[tracking stock]], while the other parts of EMC will be rolled into Dell.<ref name=FT-2015-10-12>{{cite news | title = Dell agrees $63bn acquisition of EMC | newspaper =Financial Times | date = October 12, 2015 | url = http://www.ft.com/cms/s/0/170fa5f2-708a-11e5-9b9e-690fdae72044.html}}</ref> Once the acquisition closes Dell will again publish quarterly financial results, having ceased these on going private in 2013.<ref>{{cite news | url = http://washpost.bloomberg.com/Story?docId=1376-NWLBRI6K50YD01-7BPSHOJ09P7U1SQJVJQUC9CNAI | newspaper = [[The Washington Post]] | author = Brian Womack | date = October 21, 2015 | title = Dell CFO Reluctantly Accepts Public Disclosures With EMC Deal | access-date = February 23, 2018 | archive-url = https://web.archive.org/web/20170621093312/http://washpost.bloomberg.com/Story?docId=1376-NWLBRI6K50YD01-7BPSHOJ09P7U1SQJVJQUC9CNAI | archive-date = June 21, 2017 |url-status=dead}}</ref>


The combined business was expected to address the markets for [[Converged storage#Scale-out architecture|scale-out architecture]], [[converged infrastructure]] and [[Cloud computing#Private cloud|private cloud computing]], playing to the strengths of both EMC and Dell.<ref name=WSJ-2015-10-13/><ref name=Economist-2015-10-12>{{cite news | magazine=[[The Economist]] | title = The merger of Dell and EMC stems from the rise of cloud computing | url = https://www.economist.com/news/business/21673523-clouded-marriage-merger-dell-and-emc-more-proof-it-industry-shifting | date = October 12, 2015}}</ref> Commentators have questioned the deal, with [[FBR Capital Markets]] saying that though it makes a "ton of sense" for Dell, it's a "nightmare scenario that would lack strategic synergies" for EMC.<ref name=Reuters-2015-10-08>{{cite news | url = https://www.reuters.com/article/us-emc-us-m-a-dell-idUSKCN0S200F20151008 | title = Dell in talks to buy data storage company EMC: source | author = Mike Stone | work=[[Reuters]] | date = October 8, 2015}}</ref> ''Fortune'' said there was a lot for Dell to like in EMC's portfolio, but "does it all add up enough to justify tens of billions of dollars for the entire package? Probably not."<ref name=Fortune-2015-10-08>{{cite news | magazine = [[Fortune (magazine)|Fortune]] | url = http://fortune.com/2015/10/08/dell-emc-merger/ | title = A Dell-EMC deal doesn't make sense. Here's why | author = Stacey Higginbotham | date = October 8, 2015}}</ref> ''[[The Register]]'' reported the view of [[William Blair & Company]] that the merger would "blow up the current IT chess board", forcing other IT infrastructure vendors to restructure to achieve scale and vertical integration.<ref name=Register-2015-10-09>{{cite web | url = https://www.theregister.co.uk/2015/10/09/dell_emc_buyout_merger_rumour_mill_overdrive/ | title = Dell hooking up with EMC and going public again? Come off it | date = October 9, 2015 | website = [[The Register]]}}</ref> The value of VMware stock fell 10% after the announcement, valuing the deal at around $63–64bn rather than the $67bn originally reported.<ref name=FT-Lex-Live-2015-10-13>{{cite news | title = Dell-EMC deal: why VMware is falling | author = Tom Braithwaite | date = October 13, 2015 | url = http://blogs.ft.com/lex-live/2015/10/13/dell-emc-deal-why-vmware-is-falling/ | newspaper =Financial Times}}</ref> Key investors backing the deal besides Dell were Singapore's [[Temasek Holdings]] and [[Silver Lake Partners]].<ref>{{cite news | title = BOOM: Dell to Acquire EMC for $67 Billion |date=October 12, 2015 | url = http://www.swfinstitute.org/swf-news/boom-dell-to-acquire-emc-for-67-billion/ | newspaper = [[Sovereign Wealth Fund Institute]]}}</ref>
The combined business was expected to address the markets for [[Converged storage#Scale-out architecture|scale-out architecture]], [[converged infrastructure]] and [[Cloud computing#Private cloud|private cloud computing]], playing to the strengths of both EMC and Dell.<ref name=WSJ-2015-10-13/><ref name=Economist-2015-10-12>{{cite news | magazine=[[The Economist]] | title = The merger of Dell and EMC stems from the rise of cloud computing | url = https://www.economist.com/news/business/21673523-clouded-marriage-merger-dell-and-emc-more-proof-it-industry-shifting | date = October 12, 2015}}</ref> Commentators have questioned the deal, with [[FBR Capital Markets]] saying that though it makes a "ton of sense" for Dell, it's a "nightmare scenario that would lack strategic synergies" for EMC.<ref name=Reuters-2015-10-08>{{cite news | url = https://www.reuters.com/article/us-emc-us-m-a-dell-idUSKCN0S200F20151008 | title = Dell in talks to buy data storage company EMC: source | author = Mike Stone | work=[[Reuters]] | date = October 8, 2015}}</ref> ''Fortune'' said there was a lot for Dell to like in EMC's portfolio, but "does it all add up enough to justify tens of billions of dollars for the entire package? Probably not."<ref name=Fortune-2015-10-08>{{cite news | magazine = [[Fortune (magazine)|Fortune]] | url = http://fortune.com/2015/10/08/dell-emc-merger/ | title = A Dell-EMC deal doesn't make sense. Here's why | author = Stacey Higginbotham | date = October 8, 2015}}</ref> ''[[The Register]]'' reported the view of [[William Blair & Company]] that the merger would "blow up the current IT chess board", forcing other IT infrastructure vendors to restructure to achieve scale and vertical integration.<ref name=Register-2015-10-09>{{cite web | url = https://www.theregister.co.uk/2015/10/09/dell_emc_buyout_merger_rumour_mill_overdrive/ | title = Dell hooking up with EMC and going public again? Come off it | date = October 9, 2015 | website = [[The Register]]}}</ref> The value of VMware stock fell 10% after the announcement, valuing the deal at around $63–64bn rather than the $67bn originally reported.<ref name=FT-Lex-Live-2015-10-13>{{cite news | title = Dell-EMC deal: why VMware is falling | author = Tom Braithwaite | date = October 13, 2015 | url = http://blogs.ft.com/lex-live/2015/10/13/dell-emc-deal-why-vmware-is-falling/ | newspaper =Financial Times}}</ref> Key investors backing the deal besides Dell were Singapore's [[Temasek Holdings]] and [[Silver Lake Partners]].<ref>{{cite news | title = BOOM: Dell to Acquire EMC for $67 Billion |date=October 12, 2015 | url = http://www.swfinstitute.org/swf-news/boom-dell-to-acquire-emc-for-67-billion/ | newspaper = [[Sovereign Wealth Fund Institute]]}}</ref>
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