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Roundup: EMC Prevails, Wins Data Domain
Yesterday morning we wondered "Is The Data Domain Saga Over?" The DDUP deal was indeed over by the end of the day, as original suitor NetApp (NTAP) said it would not compete with the enhanced $33.50 a share bid announced Monday by EMC Corp. (EMC)
Rich Miller
July 9, 2009
1 Min Read
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Yesterday morning we wondered "Is The Data Domain Saga Over?" It was indeed over by the end of the day, as original suitor NetApp conceded defeat and said it would not compete with the enhanced $33.50 a share bid announced Monday by EMC Corp. "NetApp applies a disciplined approach to acquisitions, one focused intently on creating long-term value for our stockholders," said Dan Warmenhoven, NetApp's chairman and CEO. "We therefore cannot justify engaging in an increasingly expensive and dilutive bidding war that would diminish the deal's strategic and financial benefits." Here's some reaction from around the web:
Steve Duplessie of Enterprise Strategy Group says he thinks "the price was too high to begin with, and nuts by the end. ... I think NetApp would have enjoyed a lot of synergies and opportunity with Data Domain, but at that price, there was simply no margin for error. They are probably pissed off, but in the end I think they will be happy with their decision."
Marc Farley notes that "Netapp gets a consolation prize - the $57 Million break up fee which will be paid by Data Domain. It's not a lot but I'm sure they can put it to good use. The larger problem for Netapp is how they are going to replace DDUP in their plans."
GigaOm speculates that the post-DDUP NetApp may have a cloud problem. "Given that Facebook and Yahoo seem to have turned away from NetApp, the company may feel exposed to cloud computing, since cloud service providers have taken to buying cheap commodity hardware straight from the factory in Asia instead of buying the hardware and software as a solution from storage OEMs like NetApp."
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