The computer market has seen a decline over the past few years, as the more portable smartphones have surged into the gadgets market. Being the all-in-one devices that they are, the smartphone business continues to be lucrative, and big names in the tech industry owe much of their revenues from the sales of mobile devices.
Recently, reports projected that laptops will soon be phased out with the continuing rise of smartphones. Even tablet devices are unable to keep up with the demands for the mobile devices. The surge of smartphone demands has taken its toll on hardware manufacturers, which still continue to bank on their laptop and PC sales for revenues. Dell used to be the world's biggest PC company. But following the decline of the PC market, the company is poised to have a transformation.
The hardware manufacturer has been expected to announce its takeover of EMC on Oct. 11, Monday. According to Re/code, the talks about the deal have been conducted directly between Dell CEO Michael Dell and EMC CEO Joe Tucci. The takeover is said to be the biggest tech deal of all time, amounting to about $50 billion. The deal was said to have been finalized on Sunday, Oct. 10.
The deal is said to include protection for both parties, from any movement of the value of shares of EMC. Also part of the deal is a go-shop provision, with which EMC can seek better deals from other companies. Hewlett Packard, Oracle and IBM are among EMC's suitors, but are said to be unlikely to bid. Massachussetts-based EMC is the world's largest seller of data storage systems. The company also provides cloud services and security for businesses.
Dell was founded by Michael Dell in 1984, according to a Telegraph UK report. Two years ago, Mr. Dell and Silver Lake Partners took Dell private, and they promised to turn the company into a more profitable IT firm. Since then, PC sales have continued to decline.