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Storage vendor EMC is buying RSA Security for over $2 billion in a deal which is expected to close officially early next year. Wall Street gave the deal the thumbs down, however, hammering EMC stock substantially. Wall Street analysts failed to comprehend why EMC had to pay $2 billion for RSA Security, finding the cost too high. Joe Tucci, EMC's chair, president and CEO, sought to explain that RSA Security had been quietly entertaining multiple offers, and that his company decided to pay the price before RSA Security was gone. Adding to EMC's woes is the fact that Art Coviello, RSA's CEO and president, is facing a stock-options probe from federal and state regulators over the past few weeks. Analysts point out that if the probe should go against the RSA chief, then EMC would find itself offering even more explanations.
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