https://en.wikipedia.org/wiki/Corporate_statism
Corporate statism or state corporatism is a political culture and a form of corporatism the proponents of which claim or believe that corporate groups should form the basis of society and the state. By this principle, the state requires all citizens to belong to one of several officially designated interest groups (based generally on economic sector), which consequently have great control of their members. Such interest groups thus attain public status, and they or their representatives participate with national policymaking, at least formally.[1]
Socialism works the same way. They frame it as the state absorbing corporations instead of corporations absorbing the state, but the result is the same. In a free society, the state and corporations need to remain separate, with corporations providing the services that involve substantial risk and can be permitted to fail, while the state provides the essential services where failure isn't an option.
Corporations should be small and nimble while government should be big and stable. The problems start when you expect or allow one to act like the other.
Not really. There are various way to interpret workers owning the means of production. Some of these interpretation consider the state as nothing more than an entity made of workers, and therefore the state owns stuff. Other currents consider workers in a given company owning that company, and the state remains separate (this is similar to a co-op economy).
There are more options, of course, depending on which groups own which means of production, and how the power is divided (I.e., district level, sector level etc.).
I smell bullshit