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Dell in talks to buy EMC - source

Thursday, October 08, 2015 - 01:10

A deal between the PC maker and the data storage giant would rank as one of the largest tech deals ever. Fred Katayama reports.

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It could be one of the biggest tech deals ever. A source says PC maker Dell is in talks to buy data storage giant EMC. It's not known what the terms are, but the market values EMC at $50 billion. Spokesmen of both companies declined to comment. A deal would beef up CEO Michael Dell's drive to transform his privately held company from a PC maker serving consumers into one serving businesses with network servers, security, and data storage. It would help Dell better take on rivals HP and IBM. EMC's brands include its EMC data storage business, security business RSA, and cloud-computing software makers Pivotal and VMware. The Wall Street Journal says a deal would have Dell spin off the VMware business, something which activist shareholder Elliott Management has been calling for. William Blair analyst Jason Ader said, "This type of deal a few years ago would've been a huge shock, but not anymore. Everyone knows big IT companies need to contemplate greater scale, so many disruptions are going on." EMC shares, down 12 percent this year, rising in early trading.

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Dell in talks to buy EMC - source

Thursday, October 08, 2015 - 01:10