Tuesday, January 30th 2018
Dell Contemplates Reverse Merger with Subsidiary VMware
Dell officially went private in a deal that was worth around $24.4 billion back in 2013. According to news from CNBC, the company is considering going back to its roots. However, Dell currently find themselves in a dilemma. They can go down the conventional road and carry out an initial public offering (IPO) or opt for a reverse merger. Sources are saying that the tech giant is favoring the second option and has already chosen VMware as a candidate. VMware is a publicly traded company, therefore the reverse merger is a viable option. Ironically, Dell owns VMware which makes this a bizarre deal where a subsidiary is buying out the parent company. But then again anything goes in the business world.
One of the perks of being a private company is the non-existent obligation to disclose financial results to the public. As a result, the overall value of Dell is unknown at this time. What we do know is that the company is $50 billion in debt. If this deal with VMware materializes, it would help loosen the knot around their neck. Dell made headlines in 2015 when they bought EMC for a jaw-dropping $67 billion. In theory, a VMware takeover should surpass that sum easily. The board of directors and advisors are going to have a get-together next month to discuss the company's future.
Source:
CNBC
One of the perks of being a private company is the non-existent obligation to disclose financial results to the public. As a result, the overall value of Dell is unknown at this time. What we do know is that the company is $50 billion in debt. If this deal with VMware materializes, it would help loosen the knot around their neck. Dell made headlines in 2015 when they bought EMC for a jaw-dropping $67 billion. In theory, a VMware takeover should surpass that sum easily. The board of directors and advisors are going to have a get-together next month to discuss the company's future.
5 Comments on Dell Contemplates Reverse Merger with Subsidiary VMware
Intel step up your game, what the hell, you want Dell to starve to death