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WSJ: Dell in Advanced Talks for Potential $50B EMC Buy, VMware Spinoff

acquisition,  mergerDell and its private equity parent firm Silver Lake are currently in advanced negotiations to buy EMC (NYSE: EMC) and spin off the VMware (NYSE: VMW) business from EMC after the transaction, the Wall Street Journal reported Wednesday.

Liz Hoffman, Dana Mattioli and Joann Lublin write the companies could either reach an agreement or end talks within a week.

The potential value of the deal is approximately $50 billion based on EMC’s market capitalization, the report said.

EMC previously considered a downstream merger with VMware, which it owns an 80-percent stake in, amid pressure over the past year from investor Elliott Management Corp. to spin off VMware.

A buyout by Dell would be the largest takeover ever in the technology industry and would support the company’s transition to a corporate technology business from a consumer-facing one, the Journal reported.

The report said Dell and EMC began initial talks last year.

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