The Start of 2016 Brings the Start of Layoffs

The start of 2016, brings the start of layoffs. In my first post of the year, one of the stories from 2015 that has secured my interest to keep an eye on in 2016 is the Dell $67 billion dollar merger or acquisition of EMC and there has been some chatter that EMC, VMware and Dell have been struggling to get the merger across the goal line. I have heard of a couple different reasons for the cause of this struggle. One of the reasons I have heard was the extra funding that would be needed to cover the $10 billion or more in capital gains taxes that Dell would need to cover. These taxes were originally going to be covered by a tracking stock. This tracking stock was structured under a very fundamental provision of the U.S. tax code and was designed to represent the holdings of Dell as the parent company.

Dell Acquires EMC

Dell acquires EMC. It has been no secret that EMC has been under some pressure from Elliott Management Corp., one of EMC’s investors, to do something to raise share prices and rumors and speculation about what might be coming has been a topic of many different post and articles over the last year or so but now it has been confirmed that the deal is done. This deal will close in 2016 and EMC’s Chief Executive Officer, Joe Tucci will finally get his opportunity to retire. For all practical purposes, this has been is the making for quite a while and there was some speculation that some kind of announcement needed to happen by the earnings report.