Dell in Talks to Purchase EMC

The New York Times is reporting Dell Inc. is in advanced talks to buy EMC (NYSE: EMC). According to the report (Dell Is Said to Be in Talks to Acquire EMC) the deal would likely involve mostly cash and the agreement could be reached within a week, although these people also cautioned that talks were continuing and might still fall apart.
Here’s an excerpt from the New York Times article:
“A takeover of EMC would answer years of questions about the fate of the 36-year-old company, which has grown from data storage into a collection of businesses, including network security and content management for corporate clients. Critics have contended that EMC’s vaunted “federation” business model has produced little benefit for shareholders in recent years, with some investors calling for a breakup. Such demands have been largely rebuffed by EMC’s longtime chairman and chief executive, Joseph M. Tucci, who is 67.”
“EMC’s core storage business, meanwhile, has faced pressure from rivals, including the likes of Pure Storage, a six-year-old company that went public on Wednesday. Much of EMC’s value, moreover, comes from its 80 percent ownership of VMware, which makes so-called virtualization software, used to make efficient modern computing systems. VMware is worth $34.3 billion, making EMC’s stake worth $27.4 billion. EMC also has 98 percent of the voting shares in VMware.”
Read the full New York Times article: http://www.nytimes.com/2015/10/08/business/dealbook/dell-is-said-to-be-in-talks-to-acquire-emc.html?_r=0