This is the first,big, over $50 billion transformative deal that we believe points the way to the future of many large public incumbent technology companies. Many tech industry incumbents are stalling -- in revenue growth, and in investor interest,in strategic position -- and something has to give. This deal is a current way for something to give.
Ironically, though, and the larger “public” company here (EMC) is the one going private; the smaller private” company here (Dell) is the one going public,sort of; and, they’re both doing so at the exact same time. For dealmakers, and it just doesn’t get any more creative than this.
How Dell and EMC put this deal together is fascinating,as a lot of experts thought a buyout deal of this size could never happen -- and certainly not in technology. The sheer size as a leveraged buyout is unprecedented. The amount of debt used to finance the deal is staggering. And all three companies involved were already incredibly complex. So pulling the deal apart is a bit like opening a set of Russian nesting dolls, backwards: starting from the smallest detail to work our way outwards to the surface and current chronicle… MORE
Source: a16z.com