I decided to post a link from an industry blogger that publishes on StorageMonkeys. This blog asks some valid questions around the $100 million cash infusion that EMC recently made in Quantum - EMC and Quantum Deal Raises Question.
Read the comments on the blog as well.
One thing to point out - the blogger mentions that Data Domain is using Quantum's technology. That is very, very wrong. Data Domain doesn't use any Quantum technology. The cross licensing deal between these two companies was to remove any litigation issues that might slow down Data Domain as they were going public.
And the 390,000 shares of stock Quantum received as a result of the agreement was?
Posted by: Aaron Kristoff | 04/03/2009 at 11:32 AM
The most money Quantum has made with dedupe ;) Just kidding.
It was all part of the negotiations. Are you implying that Data Domain is using Quantum technology? If so, I assure you that you are incorrect.
Please read the following for more information - http://www.datadomain.com/products/faq-patents.html
Posted by: Tony Asaro | 04/04/2009 at 09:03 AM
That was pretty funny :-)
Although I am sure that Quantum did alright money wise with the EMC and Dell deals.
And no, not trying to imply anything.
The FAQ just points out what we already knew. That as part of the agreement between QTM and DDUP, DDUP gave 390,000 shares of common stock to QTM.
The question we will never have an answer to is why. And so we will all keep wondering.
Posted by: Aaron Kristoff | 04/05/2009 at 07:12 PM
My personal opinion is that it was part of the negotiations and that DD just wanted to go IPO without any major hassles. I have seen patent disputes get very ugly and costly - and they drag out and consume resources. Additionally, an ongoing patent dispute would make that a question by press, analysts and Wall Street over and over and over. And customers might question it as well. Therefore, just cut the deal if it is something they could live with and move on.
Posted by: Tony Asaro | 04/06/2009 at 03:20 PM