What Michael Dell should say about 3Par

What Michael Dell should say about 3Par

Summary: As Dell ponders its next move in the 3Par bidding war, here's a mock release on what Michael Dell should say after he takes a termination fee and runs.

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As we wait for Dell's decision on whether it will match HP's $30 a share offer for storage vendor 3Par, it's worth ditching the emotion and getting to the bottom line.

Let's face it, this 3Par bidding war has become a tad ridiculous. It's all about emotion. In fact, the party that has the sense to walk away will probably be the real victor.

Without further ado, here's what Dell's statement should say as it lets HP have 3Par.

Dell gets a clue, drops 3Par ROUND ROCK, Texas--(BUSINESS WIRE)--Dell announced today that it has regained its sanity and will give up on the 3Par acquisition.

"When we announced plans to buy 3Par we felt that the premium we paid was worth it given our potential for storage synergies. But following HP's bid, we've determined that the quest just isn't worth it," said Dell CEO Michael Dell. "We're happy to let HP pay for an overvalued asset. HP can have it. We had our bout with temporary insanity but got over it."

Dell continued:

"Good luck to HP and whoever is making the decisions there. May your 3Par purchase work out as well as 3Com and Palm will (NOT!). We'll take our termination fee and run."

About Dell

Dell Inc. (NASDAQ: DELL - News) listens to customers and shareholders every once in a while. Dell delivers worldwide innovative technology, business solutions and services they trust and value. For more information, visit www.dell.com.

Topics: Storage, CXO, Dell, Hardware, Hewlett-Packard, IT Employment

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15 comments
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  • You summed it up early, Larry.

    "...the party that has the sense to walk away will probably be the real victor."

    3Par stock has been valued by the investment community at $10. Suddenly, it's worth $30? To who? Or is it whom? HP has a meager storage presence, Dell's is non-existent. Paying $2B for 3Par (or more) is a knee jerk reaction to the problem. Neither company has a high enough profit margin to afford this.

    I agree with everything you said Larry, except the disparaging comments about HP's acquisition of Palm. I would much prefer a WebOS interface to an HP printer than the junk HP has now. If they can end up with a WebOS phone/tablet, great. They are correct in looking outside of Microsoft for a software solution there.
    Info-Dave
    • whom ;-) nt

      @Info-Dave

      nt
      Economister
      • RE: What Michael Dell should say about 3Par

        @Economister
        It is good to see some detailed information on this topic which is very rarely discussed on the internet. thanks
        <a href="http://www.villedasogno.net">ville lusso</a>; bye!
        giacomo Al
    • Knitlogix is selling 3PAR in india.

      Knitlogix India is the 3PAR's only partner in India delivering 24X7 support and 4 Hr SLA and has install base in India.
      Please contact 40-64582708 Knitlogix Private Limited,Hyderabad for more details.
      KNITLOGIX
  • RE: What Michael Dell should say about 3Par

    As the song says -
    "You got to know when to hold 'em know when to fold 'em,
    Know when to walk away and know when to run."
    Agnostic_OS
    • RE: What Michael Dell should say about 3Par

      @Agnostic_OS Run Michael, Run!
      Deacon336
  • 3Par an investment for idiots

    I can't understand why anybody would bid $1+ billion for a company that barely makes $5 million a year.
    wackoae
  • RE: What Michael Dell should say about 3Par

    Michael Dell will be taking a wise decision if he let 3par go off. I bet you that 3 Par is going to be a poor ROI asset. All the best to HP !
    sundar.emc@...
    • 3Par is a bad ROI

      The company barely makes $5 million in real revenue a year, but somehow everybody thinks that it is worth billions.

      Base on the earnings today and assuming some completely unrealistic increases in revenue, I don't see how anybody could justify an investment that would take about 100 years to recoup.
      wackoae
      • RE: What Michael Dell should say about 3Par

        @wackoae take a look at the debocle EMC is going through in Virginny http://www.zdnet.com/blog/btl/virginias-it-outage-doesnt-pass-management-sniff-test/38609?tag=nl.e589

        looks like better times are ahead for ole 3par.
        nickdangerthirdi@...
  • RE: What Michael Dell should say about 3Par

    Who is Michael Dell? Has he been around the company lately? Voted worst tech CEO! 1% to R&D! Streak, or whatever it is DOA! He has morphed the company into DULL. But not after pocketing a cool $400mil +.

    A new CEO would be a more appropriate acquisition. Get back to business. Focus resources and make 21st century
    devices. Am I the only one missing something?
    Dr. Figgnuttan
    • He is they guy who turned a brand people trusted

      .... into one that sells overpriced JUNK.

      Ever actually look at what parts they install in computer they claim is a server?? The 1st clue should be the cheap fans ......
      wackoae
      • Dell never made good stuff

        @wackoae
        They [b]ALWAYS[/b] made junk. Even when Mikey Boi was doing it from his dorm room.

        Nothing Dell has ever made has been of high quality.
        itguy08
      • For real

        @wackoae
        Dell quality control in the consumer PC space has fallen off a cliff.

        They were ranked last, below Acer, in Consumer Reports. That's a disgrace and reason enough for new management.
        Theseus
  • RE: What Michael Dell should say about 3Par

    At least it seems like HP has a plan where 3Par would fit into their company... how would Dell even start to integrate 3Par?
    GreenDCman