With a majority stake in VMware and a commanding lead of the storage space, what's not to like about EMC. If you are Cisco, it makes sense to pick up EMC now because the stock is down a bit and moreover Cisco would be able to immediately expand its product line beyond networking, telepresence and networking.
Overnight, Cisco could become a leader in storage and a very strong security player.
Remember that Cisco was an early VMware investor and they likely want to expand their ownership of the company.
Remember also that Cisco is doing some amazing things with virtualization in their routers and owning a premiere name in the virtualization space can only help their core offerings.
At this point the rumor is just that but I have been pretty amazed at just how many of these speculative discussions have become reality.
One of the exceptions was the Microsoft/Yahoo merger and even that one seems to be happening in some capacity again.
I think there is little room for complaint if this rumor is true as shareholders may be better off with Cisco stock and customers would likely want to consolidate their purchasing with less vendors. At this point such a deal -- even if hypothetical, makes sense for most involved.
Overnight, Cisco could become a leader in storage and a very strong security player.
Remember that Cisco was an early VMware investor and they likely want to expand their ownership of the company.
Remember also that Cisco is doing some amazing things with virtualization in their routers and owning a premiere name in the virtualization space can only help their core offerings.
At this point the rumor is just that but I have been pretty amazed at just how many of these speculative discussions have become reality.
One of the exceptions was the Microsoft/Yahoo merger and even that one seems to be happening in some capacity again.
I think there is little room for complaint if this rumor is true as shareholders may be better off with Cisco stock and customers would likely want to consolidate their purchasing with less vendors. At this point such a deal -- even if hypothetical, makes sense for most involved.
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Oh... THAT rumor again? The Cisco/EMC rumor (merger or acquisition, pick your poison) has been around for years now. Perhaps it will become a self-fulfilling prophecy - it definitely seems to make strategic sense - but what is the basis of reporting the rumor now? The author made no mention of increased Wall St. chatter nor did he even cite "unnamed sources", so is this article perhaps the result of a slow news day?
The answer is that I have been hearing about it from multiple sources which is usually when I report on such speculation. I hadn't heard this rumor until recently BTW so perhaps I assigned it more importance because it was new to me.
I wouldn't characterize what I have heard as anything beyond speculation by the way. No high level investment banker interviews exist regarding this matter -- as far as I know.
As always, I will report more if I hear of anything.