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Storage giant EMC and iconic PC and server hardware maker Dell are in merger talks reported wsj.com.
EMC’s market capitalisation is around $50bn and the firm has been in the press over the last months with market analysts questioning its strategy. EMC owns 80% of VMware and at one point VMware CEO Pat Gelsinger talked down reports that the software company would take over its parent. EMC shareholder activists have called for VMware to be spun off.
EMC which supplies low, medium and high end storgae RAID arrays, flash storage hardware and software has always been a acquisitive company.
Rival Pure Storage IPO’d on the New York Stock Exchange this week at $17 but dropped 5% in initial trading.
Dell, led by founder Michael Dell pioneered the direct sales model for PCs before moving into Wintel servers.