HP rumoured to be mulling VMware buy - reports

Sources claim EMC has decided to explore sale

EMC has decided to explore selling its VMware arm, according to reports, which cite sources who suggest HP could be poised to snap it up.

Earlier this year, reports emerged claiming investor Elliot Management cut itself a $1bn (£590m) slice of EMC with a plan to strong-arm it into selling off its 80 per cent stake in VMware.

A week later, on an earnings call, EMC's chief executive insisted he had never met with anyone from the activist investor and talked up his firm's "federation" model, which incorporates EMC Information Infrastructure, VMware and Pivotal under the EMC banner.

Today, the New York Post claims EMC has finally decided to explore the option of selling off the virtualisation firm. Sources told the publication that competitors in the space will likely not be interested, but that HP is a possible buyer.

EMC declined to comment and HP was not available.