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
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5 Comments on Dell Contemplates Reverse Merger with Subsidiary VMware

#1
bug
"$50 billion in debt" - I'm still taking that in o_O
Posted on Reply
#2
ShurikN
Wow, how does a giant like Dell get 50b into debt...
Intel step up your game, what the hell, you want Dell to starve to death
Posted on Reply
#3
Easy Rhino
Linux Advocate
No! Don't ruin VMWare!
Posted on Reply
#4
R-T-B
Easy RhinoNo! Don't ruin VMWare!
I mean, they already own it...
Posted on Reply
#5
TheinsanegamerN
ShurikNWow, how does a giant like Dell get 50b into debt...
Intel step up your game, what the hell, you want Dell to starve to death
Dell made headlines in 2015 when they bought EMC for a jaw-dropping $67 billion.
That might have something to do with it.
Posted on Reply
Nov 22nd, 2024 09:54 EST change timezone

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