12/18/2023 0 Comments Should i sell emc stockThrough its investment, Elliott is now EMC’s fifth-largest shareholder, according to The Wall Street Journal. At the same time, VMware’s first-quarter revenues increased 16 percent, while those of Pivotal-a software company EMC spun off 18 months ago-grew 41 percent.ĮMC is scheduled to release second-quarter financial numbers July 23. The present arrangement has hindered EMC’s stock, and spinning off VMware would bolster the stock, the investors will argue.Īccording to EMC’s first-quarter numbers, the company saw revenues jump 2 percent from the same period in 2013, to $5.5 billion, though net income fell 30 percent. Learn More.Īctivist investor Elliott Management, which earlier this year made headlines by pressing Juniper Networks and Riverbed Technology to make changes in how they operate, reportedly is now preparing to push data storage giant EMC to spin off virtualization pioneer VMware.Īccording to a report in The Wall Street Journal, Elliott Management has acquired more than $1 billion worth of EMC stock-worth about 2 percent of the company-and wants EMC to sell off its 80 percent stake in VMware, which it acquired in 2004 and has since been running as an independent subsidiary.Įlliott officials have contacted EMC Chairman and CEO Joe Tucci over the past week and plan to meet with him to voice their concerns that the EMC-VMware relationship is not helping either company reach its potential, according to the news report. We may make money when you click on links to our partners. EWEEK content and product recommendations are editorially independent.
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