EMC CEO Joe Tucci is considering several strategic options for the future of the company
Data storage giant EMC is considering a deal whereby it could be acquired by its cloud and virtualisation subsidiary VMware.
It is one of several options being considered by the data storage company as part of a strategic review.
According to Re/Code, other options on the table include potentially selling to rivals Hewlett-Packard or Cisco, selling off assets, or ploughing ahead and acquiring more companies.
CEO Joe Tucci is under pressure to stabilise the company ahead of the naming of a successor for the CEO role.
Massachusetts-headquartered EMC currently has an 80pc stake in VMware.
Both EMC and VMware are major employers in the Irish tech scene, employing more than 3,000 and 630 people respectively.
The option came about because VMware’s stock is higher than EMC’s at US$18.99 compared to EMC’s US$12.85. VMware is currently valued at more than US$36bn.
If EMC pursued the reverse acquisition option by VMware, it would most likely involve VMware issuing up to US$55bn worth of new shares and then spending US$30bn to buy out EMC’s 80pc ownership.
EMC acquired VMware for US$625m in 2003.
