Oracle's Ellison: $67 Billion Dell-EMC Deal 'is Brilliant'
The software giant's founder tells analysts that he "shed more than a couple of tears" after hearing about the acquisition.Don't count Oracle founder Larry Ellison among the critics of Dell's controversial $67 billion deal to buy data storage giant EMC and its assorted federated companies. Speaking with financial analysts last week about Oracle's plans in such areas as cloud computing and software-as-a-service (SaaS), Ellison fielded a question about the proposed merger, which was announced in early October. "I think it's brilliant," said Ellison, Oracle's former CEO who now is the software vendor's chairman and CTO. "My friend Jim Davidson and my friend Michael Dell have done a spectacular job in engineering that EMC deal. … They're all going to make billions of dollars. Michael's going to make billions of dollars personally. … It's a fabulous, fabulous deal." Davidson is a managing partner at Silver Lake Partners, an equity firm that two years ago helped Michael Dell take his namesake company private in a $25 billion buyout.
EMC had been under pressure from activist investor Elliott Management for more than a year to make structural changes—including possibly spinning out VMware—to increase its value and return more money to shareholders. There had been reports over the past year or so that EMC executives had been in negotiations with other vendors, including Hewlett-Packard, though nothing had panned out. Some news sites in early October brought up Dell's name as a possible suitor, and the deal was announced a week later.