According to The Wall Street Journal, Dell is currently in talks to buy one of the world’s leading data-storage companies - EMC Corp. - for about $50 billion. The deal could be ranked as the largest takeover in the tech industry history.
The Silver Lake fund is engaged in negotiations as it became known. Earlier in 2013, Chief Executive Michael Dell, the Dell founder, took his own company private with the help of this private equity backer.
Although EMC has a market capitalization of about $50 billion, the deal is likely to be valued at way above that level, the informed sources said. Dell is reportedly considering both a merger and EMC takeover.
Early this year, the data-storage systems maker announced its intention to cut jobs amid discouraging revenue and profit forecasts. The company reported a 17% decline in quarterly profit in the second quarter of 2015.
Dell has also faced a drop in its revenues on the back of weak demand for PCs. According to the general outlook, a decline in PC sales is expected to accelerate up to 8.7%, up from an earlier forecast of 6.2%. Experts at FactSet announced that Dell has run up a debt of over $11.7 billion and it is not clear how the company would finance the purchase of EMC.
