Dell Sells IT Services Unit….. At A Loss

Dell has announced it is selling its IT services unit to NTT Data of Japan for more than $3 billion. The question is why would it do that? The answer is to fund the purchase of EMC which I’ve written about here. Dell really needs cash and selling off parts of itself that it feels that it doesn’t need is a way to fund this $67 billion transaction. Though, I’d like to point out that they’re selling their IT services unit at a loss seeing as Dell purchased it for almost $4 Billion just a few short years ago. That makes this move seem like one of desperation more than anything else.

 

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