John Paczkowski

Recent Posts by John Paczkowski

NetApp to EMC: I’ll See Your Bid and Rai … Nevermind.

EMC’s (EMC) surprise bid for Data Domain (DDUP) has sparked a bidding war of sorts with its storage rival NetApp (NTAP). I say “of sorts” because this morning NetApp raised its offer for Data Domain to $30 a share from $25 to match, but not exceed, EMC’s bid. Which is odd, because EMC’s nearly $2 billion bid is all-cash and NetApp’s is cash and stock. Why would Data Domain shareholder’s prefer NetApp’s offer to EMC’s? For a few reasons, says NetApp CFO Steve Gomo. “First, it offers a combination of value certainty — through the cash and the collar — coupled with the potential for long-term value upside through the ongoing ownership of NetApp stock,” Gomo wrote in a letter to Data Domain’s board of directors. “Second, the stock portion of the transaction consideration is expected to be tax-free to Data Domain stockholders. And third and potentially most important, we believe that a combination of Data Domain and NetApp offers clearly superior transaction certainty. Unlike a combination of Data Domain and EMC, which has substantial product overlap and which we believe will face significant regulatory challenges, a combination of Data Domain and NetApp has no meaningful regulatory risk.”

In short, NetApp’s stock is undervalued, so you’re getting a killer deal, and one free of regulatory scrutiny to boot. What’s not to like? Sadly for NetApp, it’s the $13.55 of its $30 a share bid offered in paper.

Twitter’s Tanking

December 30, 2013 at 6:49 am PT

2013 Was a Good Year for Chromebooks

December 29, 2013 at 2:12 pm PT

BlackBerry Pulls Latest Twitter for BB10 Update

December 29, 2013 at 5:58 am PT

Apple CEO Tim Cook Made $4.25 Million This Year

December 28, 2013 at 12:05 pm PT

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I think the NSA has a job to do and we need the NSA. But as (physicist) Robert Oppenheimer said, “When you see something that is technically sweet, you go ahead and do it and argue about what to do about it only after you’ve had your technical success. That is the way it was with the atomic bomb.”

— Phil Zimmerman, PGP inventor and Silent Circle co-founder, in an interview with Om Malik