HP, EMC Reportedly Break Off Merger Talks
It is unclear when negotiations ended, but the two IT giants reportedly had been in talks for several months.Try as they might, Hewlett-Packard and EMC apparently couldn't fit the pieces together for a monumental merger of two of the largest and most successful old-line IT companies in the world. The Reuters news service, citing sources briefed on the matter, reported Oct. 15 that the two companies ended months of merger talks as discussed in eWEEK on Oct. 11. It is unclear when negotiations ended, the sources told Reuters on condition of anonymity because the talks were private. The opportunity had seemed ripe for such a megadeal because HP, which is renaming its enterprise software/services business Hewlett-Packard Enterprise, is breaking off its PC and printer businesses into a separate company called HP Inc. The match-up of Hewlett-Packard Enterprise servers, services and storage to go with EMC's core storage hardware and software business was seen by some key decision-makers as a golden opportunity to create a powerful new IT provider.
The idea of the merger ostensibly was to synergize two historically successful companies that both required a jolt of energy and also a need to enter new markets to keep that growth coming. On the surface, the idea appeared interesting for a number of reasons, and the companies apparently came close to actually doing it a few months ago.