Under the deal, Dell will pay $33.15 a share, which represents a premium even on top of EMC's current value, which had already jumped on initials rumors of a $50B acquisition last week. However, insiders say the deal won't be a straight forward cash buy-out of stock holders. Instead, EMC investors will receive about 70% in cash and the remainder in what's called a Tracking Stock, which will track the performance of just the VMWare Division within the new organization.
One of the most remarkable things about Microsoft's growing presence in the hardware business is that it has not led to open revolt among its partners. Initially, many of them were not happy about Microsoft's moves, complaining in private. "It's positioned as a laptop, very squarely against the MacBook Pro as an example. But that could also be extended to a Dell XPS 13, or an HP x360," says Patrick Moorhead. One reason there hasn't been more pushback from OEMs is that Microsoft's Surface business is still relatively small. Another is that the money Microsoft has poured into marketing Surface has raised the broader profile of Windows PCs. While Microsoft obviously risks alienating its partners, it's doing so with a much bigger fight in mind. "Right now Microsoft really believes that it has to have a combined hardware, software, and services play to go up against the likes of Apple," says Moorhead. "That's why it's doing this. That's why it's taking such an aggressive stance now, moving to laptops."
According to Ken Doctor the takeaway from the Times success is that readers reward elite global journalism. The Wall Street Journal is close behind the Times, at 900,000, while the FT's digital subscription number stands at 520,000. "These solid numbers form bedrock for the future. For news companies, being national now means being global, and being global means enjoying unprecedented reach," says Doctor. "These audiences of a half-million and more portend more reader revenue to come."