Menu
EMC stock rises on Oracle buyout rumor

EMC stock rises on Oracle buyout rumor

The Oracle/EMC rumor was fueled by a research note from Citigroup analyst Walter Pritchard, who listed potential buyout targets for Oracle, but said it was a 'potential long shot'

Speculation that Oracle might buy EMC pushed EMC's stock price up about 5 percent on Thursday, even as several analysts called such an acquisition unlikely.

"EMC shares were up 4.88 percent to $21.29 in early trading, closing in on its 52-week high of $21.83," the Wall Street Journal reported Thursday.

But EMC's stock dropped back to $21.21 by the end of the day Thursday, and had dropped again to $20.97 by 10:30 a.m.EST eastern time Friday morning.

Oracle shares, meanwhile, dropped from $28.66 to $28.33 on Thursday, and dropped slightly more Friday morning.

The Oracle/EMC rumor seems to have been fueled by a research note from Citigroup analyst Walter Pritchard, who listed potential buyout targets for Oracle. Even Pritchard seemed to think a deal unlikely, describing Oracle/EMC as a "potential long shot," according to Barron's Tech Trader Daily. Pritchard said BMC Software, Cerner and Mellanox are more likely targets for Oracle.

Oracle is among the most acquisitive companies in the tech industry, but integrating EMC into its vast portfolio could be challenging as Larry Ellison's software giant is already faced with absorbing the hardware businesses of Sun Microsystems, which Oracle purchased earlier in 2010.

According to a report in TheStreet, there are also rumors that Microsoft might buy EMC, but these were called "implausible." Avian Securities analyst Matt Bryson, who was quoted in TheStreet report, suggested that a deal in which Microsoft buys EMC's VMware could be a more likely possibility.

If Microsoft were interested in a VMware deal, the company would be unlikely to say so publicly. VMware makes the most widely used x86 virtualization platform, but Microsoft seems to believe its strategy of integrating an affordable hypervisor into Windows Server will win out over VMware's more expensive virtualization software in the end.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Oraclebusiness issuesstoragesoftwareemcData Centerfinancial resultshardware systemscorporate issuesacquisitionsmergersBTcitigroupMergers / acquisitionsConfiguration / maintenanceStorage Management

Featured

Slideshows

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

EDGE 2018: Kiwis kick back with Super Rugby before NZ session

New Zealanders kick-started EDGE 2018 with a bout of Super Rugby before a dedicated New Zealand session, in front of more than 50 partners, vendors and distributors on Hamilton Island.‚Äč

EDGE 2018: Kiwis kick back with Super Rugby before NZ session
EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018: Kiwis assess key customer priorities through NZ research

EDGE 2018 kicked off with a dedicated New Zealand track, highlighting the key customer priorities across the local market, in association with Dell EMC. Delivered through EDGE Research - leveraging Kiwi data through Tech Research Asia - more than 50 partners, vendors and distributors combined during an interactive session to assess the changing spending patterns of the end-user and the subsequent impact to the channel.

EDGE 2018: Kiwis assess key customer priorities through NZ research
Show Comments