Time Warner Inc.

Dell and EMC buck small-is-better trend with proposed mega-deal

(Bloomberg) -- Michael Dell's proposed acquisition of EMC Corp. is an old-fashioned argument for bulking up, taking two ailing companies and betting they'll be stronger under one roof. And yet the prevailing trend is to do the exact opposite. Both Hewlett-Packard Co. and EBay Inc. are splitting in two and focusing on fewer businesses. Dell is zigging while the rest of the industry is zagging. News that the PC maker is in talks to combine with EMC conjures up memories of past tech mega-mergers that didn't fare so well. Exhibits A & B: Compaq-HP and AOL-Time Warner. Both those deals failed to deliver the promised synergies and economies of scale. Now, with...