Rumours VMware will buy EMC refuse to die down

EMC is taking a second look at the idea, according to reports

EMC is taking another, closer look at the idea of its subsidiary VMware buying it, according to reports from Re/Code.

The website first published news of the rumour a few weeks ago, but today it has resurfaced. This time, the EMC board is paying it more careful consideration, Re/Code reports, citing people familiar with the matter.

EMC owns about 80 per cent of VMware, which sits in EMC's federation model – VMware, EMC Information Infrastructure and Pivotal.

The proposal for the so-called "downstream merger" is more popular this time around, the source told Re/Code, claiming recent economic turmoil in China – which has affected US firms – prompted the change of heart.

Re/Code claims the idea was first tabled by VMware chief executive Pat Gelsinger.
EMC was not immediately available to comment.

Rumours about the future of EMC have circulated furiously over the past year.

Some of the reported possible scenarios include: EMC selling VMware; EMC acquiring the whole of VMware; EMC selling VMware to HP; and even EMC being acquired whole by HP or Dell.