Dell is in talks to merge with $50 billion storage giant EMC, The Wall Street Journal reports, citing anonymous sources.
It’s unclear if this would be a full merger or if Dell would just buy parts of EMC’s business. Either way, it would be a huge deal between two of tech’s biggest companies.
EMC makes software and hardware for storage products used in high-efficiency data centers. It’s the parent company of the successful VMware.
Meanwhile, PC- and server-manufacturer Dell delisted itself from the public markets in 2013.
Market analysts have repeatedly downgraded EMC’s stock over the last year or so, but investors seem to like the idea of a deal with Dell – shares in EMC are up over 9.4% in after-hours trading.
Analysts have also been calling for Dell to acquire EMC’s data storage business, but it could end up taking over the entire company.
For its part, EMC has been going through some tough times. EMC reportedly began a strategic review to explore various options last year. And over the summer, EMC vowed to cut $850 in expenses, prompting employees to start bracing themselves for mass layoffs.
All the while, EMC has faced threats like the big cloud-computing platforms from the likes of Amazon, Google, and Microsoft. Meanwhile, free software like Hadoop has reduced the need for EMC’s expensive data-processing solutions, given that they can run on commodity hardware.
Plus, long-time EMC CEO Joe Tucci was slated to retire in February 2015, but that didn’t happen. He has made no secret of the fact that he’s searching for his replacement, though a merger with Dell could solve that problem handily.
The Journal’s report indicates that general market volatility could slow down this deal, if one were to be reached.
We’ve reached out to Dell and EMC for comment and will update if we hear back.