EMC Buyout Rumor

By Oracle

By Jean Jacques Maleval | October 18, 2010 at 2:38 pm

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EMC buyout rumor fizzles
A rumor about Oracle seeking to buy EMC has fizzled after just a day, and with good reason.

Comments

We don't see Oracle buying Oracle, for several reasons:
- too expansive: market cap of EMC at around $43 billion
- Oracle already in storage with Sun's acquisition
- VMware, EMC's subsidiary, could potentially lose big customers (Dell, Cisco, HP, IBM, etc.)
- EMC could keep VMware and only sell separately VMware or only its storage and security activities, but the giant has historically been a buyer of companies, and a lot of them, not a vendor.

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