This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

EMC Up on Oracle Buyout Rumors

Stocks in this article: EMC ORCL MSFT HPQ IBM VMW

NEW YORK ( TheStreet) -- Shares of EMC (EMC) jumped as high as 5% in morning trading Thursday, after a report said Oracle (ORCL) could acquire the storage equipment maker.

Rumors began circulating after a Citigroup analyst report issued Wednesday pegged EMC -- as well as BMC Software (BMC), Cerner (CERN), F5 (FFIV) and Mellanox (MLNX) -- as potential targets for Oracle. EMC is a "long shot," the report said.


While a deal with Oracle is possible because of EMC's attractive storage business, EMC's 80% stake in virtualization software company VMWare (VMW) might add complications, Avian Securities analyst Matt Bryson said. EMC has traditionally taken a "hands off" approach with VMWare, and Oracle "might have a hard time with that ." Oracle has also made investments to build up its own virtualization platform, and VMware would be "a dead expense," he said.

If Oracle decided to buy EMC, it might consider divesting VMWare, Bryson added.

Bryson also deemed other rumors circulating about a combination between Microsoft (MSFT) and EMC as implausible. "Could Microsoft be interested in VMware?" he said. "That's more interesting, but not EMC as a whole."

Data storage companies have already seen a string of buyouts in the last few months, including HP's (HPQ) $2.35 billion acquisition of 3Par in September, and IBM's (IBM) purchase of Neteeza for $1.7 billion.

EMC and Oracle could not be reached for immediate comment.

In midday trading, EMC was up 3.74% to $21.06 and Oracle was down 1.4% to $28.20.

--Written by Olivia Oran in New York.

>To follow the writer on Twitter, go to

>To submit a news tip, send an email to:

Readers Also Like:

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs