In the face of abundant criticism, EMC confidently defends its acquisition of Documentum
There was no shortage of people willing to comment on the implications of EMC's announcement that it would purchase content management vendor Documentum in a deal valued at $1.7 billion. Within hours after word of the agreement got out, at least a half-dozen analysts and competitors began contacting the press to offer their input — which was tinged with a heavy dose of skepticism, to say the least.
Take for instance the statement released by FileNet: "Executives at FileNet believe the EMC acquisition will be a distraction for Documentum and take the company's eye off the prize of enterprise content management domination and innovation."
Alan Pelz-Sharp, vice president of software and services at Ovum, noted similar concerns. "EMC is a storage vendor that has no history of content or document management," he said in a statement. "It is to be hoped that Documentum will be allowed to continue largely as a subsidiary rather than simply merged into the whole of EMC."
Still others questioned the 29-percent premium on Documentum's stock price that EMC agreed to pay. And investors responded to the arrangement by selling shares of EMC stock, leaving the value of the deal at $1.56 billion a few days later. Read