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Dell Considering Reverse-Merger with VMware

Category: General News
Posted: 10:20AM

At present Dell Technologies is a privately held company, but that may change as means of paying off its $50 billion debt are considered. Among the potential plans is a reverse-merger with VMware. VMware was a pioneer in virtualization and in 2015 Dell acquired EMC and 80% stake in VMware for $67 billion. That deal remains the largest technology acquisition to date, but this proposed reverse-merger, where the smaller VMware would purchase Dell, could surpass it.

The reason this reverse-merger is being considered is as a way to make Dell publicly traded again without having to go through a traditional initial public offering. If this were to happen, VMware would give the private owners of Dell, Michael Dell and Silver Lake, shares which they could then sell on the public market. This plan is just one of many for Dell's board of directors to consider when they meet next month, so it is still very possible something else will be done to address the company's debt.

Source: CNBC

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