As companies become well-established in the market, and sometimes seem to become integral to it, an obvious move is to begin acquiring other companies to help bolster their offerings further. We see this often: Microsoft, Apple, Google, and many others regularly search the market for smaller companies that would be worth bringing in under their wing. It also happens on a larger scale, but those sorts of acquisitions are far from common.
Well, if a new rumor that's floating around becomes true, the market will be hit by a rather amazing acquisition. The Wall Street Journal is reporting that Dell is in talks to acquire some, or all, of EMC, an enterprise storage leader that happens to own a number of notable companies itself.
Over the years, EMC has been adamant about the fact that it doesn't want to break itself into separate pieces, even though some analysts believe that it would make each company worth more. For EMC, it's worth having its separate companies all under the same umbrella; they still get to innovate and continue to grow on their own, but overall, each company complements the other. Notable EMC-owned companies include VMware and RSA Security.
Dell, meanwhile, is a leader in the enterprise market with its servers and business services, and could do well by merging with EMC. Even if EMC decided to let its storage business loose from the others, that'd still prove to be a big boon for Dell. But if Dell also had companies like VMware as part of its family, it'd truly become a major powerhouse in the enterprise market. Servers, storage, security, and virtualization is a good collection of areas to dominate.
An important thing to bear in mind that it's supposedly only talks going on right now. It could be that absolutely nothing will come from this, if neither company can come to an agreement. As of the time of writing, EMC's stock price has jumped nearly 5% since this news broke. Its current market cap hovers close to $51 billion.