Was EMC’s acquisition of Data Domain a sign of desperation?

A blogger over at Seeking Alpha makes this case.  He argues that EMC must make acquisitions for growth and that the excessive price paid for Data Domain deal is a sign of desperation.

To summarize the post, the author suggests that the growth in EMC’s core storage business is slowing and that they must look for ways to accelerate growth.  The blogger believes that EMC will pursue an M&A strategy to remedy the situation and thinks that the Data Domain  acquisition is a sign of desperation because of the excessively high price paid and the limited revenue and profit contribution.  The author illustrates his point with numerous charts and graphs.

What do you think?

Be Sociable, Share!
  • Twitter
  • Facebook
  • email
  • StumbleUpon
  • Delicious
  • LinkedIn

No comments yet... Be the first to leave a reply!

Leave a Reply