Submitted by Ian Lamont06.10.2009
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This prediction is closed and has been judged.
Following last month's announcement that NetApp would buy backup storage vendor Data Domain (NASDAQ:DDUP) for $1.5 billion in cash and stock, a bidding war has broken out with NetApp rival EMC Corporation (NYSE: EMC).
EMC's surprise, all-cash offer of $1.8 billion forced NetApp to increase its bid to $1.9 billion. While Data Domain's board accepted the revised NetApp offer, EMC is not giving up. EMC Chairman and CEO Joe Tucci sent a "love letter" addressed directly to Data Domain's employees, which claims that it has the largest storage-focused R&D budget "in all of IT" and pledges that EMC would respect Data Domain's corporate culture if it acquired the company. Some Data Domain shareholders are also objecting to the NetApp deal, alleging "breaches of fiduciary duty and other violations of state law" on the part of Data Domain's board.
But there are also questions about EMC's motives in making a hostile bid. NetApp's Chief Marketing Officer believes that Data Domain's product lines and markets are more complimentary to NetApp than EMC, and suggested that EMC was making an offer "just to impede our progress." At least one analystconcurs, noting that EMC already has de-duplication technology that a Data Domain acquisition would bring.
According to a June 4 article, the NetApp and Data Domain deal will take 60 to 110 days to close, "subject to customary closing conditions including regulatory approval."
Prediction: NetApp's proposed acquisition of Data Domain closes by September 15, 2009. The criteria for judgment includes a confirmation from one or both of the companies in the form of a press release or a press report that the deal has closed by this date. An SEC filing that describes an expected closing date will not suffice for judgment.
Price History
Prediction Statistics
| Betting Closes: | Sep 14 2009 | Current Consensus: | 47.50% | Total Bets: | 5 |
| Today's Change: | 0% | ||||
| Life Time High: | 53.74% | ||||
| Life Time Low: | 47.50% |
Comments
A couple of updates on this one:
Data Domain board rejects EMC offer, advises shareholders to do the same:
http://www.thestandard.com/news/2009/06/15/data-domain-board-rejects-emc...
How an East Coast/Silicon Valley culture clash is impacting perceptions of the rival offers:
http://online.wsj.com/article/SB124501785457413497.html
Antitrust review of the bids begins:
http://www.reuters.com/article/innovationNews/idUSTRE55E6X120090615
Ian Lamont
Managing Editor
The Industry Standard
twitter.com/the_standard
One other important news item: EMC is prepared to increase its bid, according to sources cited in a Reuters report:
http://www.reuters.com/article/americasDealsNews/idUSTRE55B4LD20090612
Ian Lamont
Managing Editor
The Industry Standard
twitter.com/the_standard
EMC ups the ante:
http://bit.ly/NzHKA
Ian Lamont
Managing Editor
The Industry Standard
twitter.com/the_standard
A relatively sudden surprise:
EMC wins bidding war for Data Domain
"Data Domain said Wednesday it has signed a definitive merger agreement with EMC and terminated its previously announced merger deal with NetApp. Data Domain said it paid NetApp a $57 million termination fee under terms of that agreement."
I was just reading in the WSJ this morning about EMC getting regulatory clearance. I guess all of the earlier talk about "West Coast culture" did not play out in NetApp's favor.
Judged accordingly.
Ian Lamont
Managing Editor
The Industry Standard
twitter.com/the_standard
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