I think that the idea is that VMware stock will be exchanged for cold hard cash, that will end up in EMC's pocket. That is, their balance sheet will have more cash in it, which means better price to book ratio.
And, presumably, a more desirable target for a LBO, neh?
Yes, that's what I was thinking. But at the same time, doesn't EMC have tons of cash? The market isn't even respecting their non-VMware business. They may not be as sexy as they one were, but they are still the storage leader and rake in the cash? For all the storage start-ups there were in the last seven years, none have broken through.