View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Leadership
  2. Strategy
January 30, 2018updated 31 Jan 2018 4:21pm

VMware to buy Dell in shock record-breaking deal?

If the rumoured deal goes ahead it would probably go down as the biggest deal in the history of the tech industry.

By Tom Ball

A shock rumour has claimed that VMware might be looking to buy its parent company, Dell Technologies, in a massive reverse-merger that would reposition the giant as a public company.

As reported by CNBC, this rumour has emerged according to people familiar with the matter and, if true, would be amount to record-breaking sums and go down in tech history.

Dell already owns a commanding 80 per cent of cloud company, VMware, a possession of the tech giant that it gained from its other record breaking deal to acquire EMC for $67 billion.

VMware to buy Dell in shock record-breaking deal?

Recently, rumours emerged that Dell may be preparing to return to public status with a new IPO, or to engage in acquisitions in a bid to stimulate growth. This need for action comes as debt from the EMC deal still weights heavy on the company’s progress.

Conducting the remarkable reverse-merger would be a way for Dell Technologies to have its shares traded publicly without initiating an IPO. In doing this, Dell shareholders could profit while burning off the excess that is lingering from the big 2015 deal.

Data Protection Day 2018: The new era of data security
Businesses STILL don’t know about GDPR – Tech sector reacts to Gov’t survey
Microsoft eyes up new organisation for AR, VR and MR

A prime stakeholder in Dell is the private equity company that has been involved in its major deals in recent years, Silver Lake, and sources familiar with the matter say that going public would allow it to sell off its stake in the company.

Content from our partners
Green for go: Transforming trade in the UK
Manufacturers are switching to personalised customer experience amid fierce competition
How many ends in end-to-end service orchestration?

While clarity is still lacking in terms of what is going to happen, other options that are open to Dell include buying the remaining 20 per cent stake in VMware that it does not yet own, or it could engage in other acquisitions in a bid to stoke up activity.

The sources responsible for sharing these rumours have also said that it is unlikely that  Dell will sell its 80 per cent stake in VMware, in addition to it being highly unlikely that Dell is likely to sell the company outright.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.
THANK YOU