EMC in Talks About Merger With Dell

That differs from a Wall Street Journal report Wednesday night saying Dell could also be in talks for a takeover of all of EMC, which would make it the largest tech industry merger of the past decade.

Recently, EMC IT senior vice president Jon Peirce revealed that the company’s internal IT infrastructure now leverages solutions offered by the other vendors of the federation, such as VMware’s vCloud Air as an off-premise extension of the company’s on-premise private cloud. Even before the buyout, it had been increasingly positioning itself as an enterprise-oriented firm, expanding its server, storage, and security offerings in a bid to move away from the slim margins of the PC business. EMC has a market capitalization of $50 billion. EMC reportedly began a strategic review to explore various options past year .

The Journal’s report indicates that general market volatility could slow down this deal, if one were to be reached. It isn’t clear which, if any, may be incorporated into a buyout of EMC corporation by Dell. EMC shares have risen for the past six sessions, but that’s after hitting a 2-year closing low on September 29.

EMC corporation has been under weight to help its stock price since a year ago, when dissident multifaceted investments Elliott Management Corp. took an approximately 2% stake in the company and encouraged it to spin off its VMware Inc. unit.

Dell is in talks to combine with all or part of EMC Corp., which is looking at ways to appease shareholders disappointed with returns and its efforts to replace an outgoing chief executive officer, people familiar with the discussions said. Merging with a few or all of EMC would be consistent with this shift.