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Dell exploring a sale of RSA?

According to a recent report in Bloomberg, Dell apparently is exploring a sale of RSA for at least US$1 billion including its debts.

RSA, is an American computer and network security company with a focus on encryption and encryption standards. RSA was named after the initials of its co-founders, Ron Rivest, Adi Shamir and Leonard Adleman, after whom the RSA public key cryptography algorithm was also named.

RSA Security was acquired by EMC Corporation in 2006 for US$2.1 billion and operated as a division within EMC. When EMC was acquired by Dell Technologies in 2016 for a reported sum of US$67 billion, RSA became part of the Dell Technologies family of brands.

Hmm........ Why is Dell selling RSA? Dell did not respond to request from the media.

Speculations were aplenty. The proceeds from the sale will be used to pay down the loans Dell took to acquire EMC? RSA is losing market share? The security business doesn't fit into Dell's long term business strategies? Dell is selling it because RSA is at its highest value now and thus Dell is trying to cash in?

What would be the implications for the cybersecurity industry in the short to medium term when a company such as Dell who are in the network and server market decides to exit from it?


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