Is anyone here surprised by the timing of the acquisition? I recently found out that there are those who find it "interesting", so I'm wondering why would anyone be surprised with timing?
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Dell waited for 6 months after the tax-free spinoff. The VMW management team could not turnaround the company, and Q1 was disastrous. At that very same time, whether unsolicited or indirectly solicited we will never know, Hock Tan shows up to buy VMW. The VMW stock price was crashing to $90, Hock Tan saved Dell and the management team from their misery of what would be a $50 VMW stock today.. That's it, plain and simple
When we were looking for a new CEO, it seemed to take a long time. Then I heard that we offered the role to someone who rejected our offer -- so they just went ahead and promoted Raghu, rather than continuing to look.
After the buy out was announced, I wondered if they always knew this would happen, and they couldn't find anyone who wanted to take a job as a 6-month CEO "gig."
milk that ca$hc0w
not really. Looking back we were spun off from Dell almost exactly 6 months before the announcement. There are actually federal financial rules that require a newly spun off company wait a period of time before another M&A... there is no SET TIME but most legal folks agree that 6 months will keep companies and their execs out of hot water...
So what happened? Dell milked us. Used us as an ATM. Then at the spin off used us to pay off some of their debt. Then 6 months later sells us (since he personally and the investment group own a majority) at almost 50% above market value.
whats suspicious. its actually pretty clear.