Dell may sell itself to VMware, a company it already owns

Dell  logoDell has been a privately run company for more than 4 years, but it appears ready to return to public life -- in a convoluted way. CNBC sources have claimed that Dell is exploring a "reverse merger" with VMware where the virtual machine maker (80 percent owned by Dell following the EMC deal) would buy its parent and let the resulting company go public without having to launch a new stock offering. It would also let Dell pay off some of its roughly $50 billion in debt.

This isn't set in stone. The tipsters also said that a number of alternatives are on the table, including a straightforward public offering, other takeovers (the targets haven't been named) or buying the remaining 20 percent stake of VMware. Dell is unlikely to sell to an outside company or give up VMware, however.

Dell has declined to comment on the report.

Dell may sell itself to VMware, a company it already owns

A reverse merger would be one of the more "audacious" options for Dell, but it would reflect how much things have changed for Dell in the space of a few years. It went private at a time when it was struggling and wanted the freedom to restructure without the pressure that comes with publicly traded stock. The situation isn't completely rosy going into 2018 -- Dell posted a $941 million net loss in its latest quarter, due in part to paying off $1.7 billion of its debt. It's in a stronger position than it was in 2013, however, with less dependence on its PC business. A reverse merger could easily help it cut costs and raise funds that would otherwise be out of reach.

Source: Engadget

Tags: Dell

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Galaxy Note10 really is built around a 6.7-inch display
 
You may still be able to download your content
 
Facebook, Messenger and Instagram are all going away
 
Minimize apps to a floating, always-on-top bubble
 
Japan Display has been providing LCDs for the iPhone XR, the only LCD model in Apple’s 2018 line-up
 
The 2001 operating system has reached its lowest share level
 
The entire TSMC 5nm design infrastructure is available now from TSMC
 
The smartphone uses a Snapdragon 660 processor running Android 9 Pie
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 / 1
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
      1
2345678
9101112131415
16171819202122
23242526272829
30      




Poll

Do you use microSD card with your phone?
or leave your own version in comments (15)