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Dell is Considering a Sale To VMware in What May Be Tech's Biggest Deal Ever (cnbc.com)
CNBC reports: Dell Technologies could emerge as a public company through a reverse-merger with VMware, the $60 billion cloud computing company it already controls, according to people familiar with the matter. The reverse merger, whereby VMware would actually buy the larger Dell, would then allow Dell to be traded publicly without going through a formal listing. It would also likely be the biggest deal in tech industry history, giving investors who backed Dell's move to go private in 2013 a way to monetize their deal, while helping Dell pay down some of its approximately $50 billion debt.
Never thought that could happen, but here we are.
It's like how Sharp sold off all of its business divisions...
...or how IBM sold all of its divisions.
If it's bringing in money, why not let it happily chug along?
*shrugs*
This strategy worked well for Apple/NeXT, where NeXT bought Apple for negative $429 million. I'd imagine Icahn would approve. :-)
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Right out of the Corporate Raiders playbook. Buy a company, bleed
it dry, make it borrow (hence the 50 billion debt), and dump it, in this
case to the public.
Is this more or less a game on paper to get an infusion of cash for Dell, or could this actually have an effect on the VMWare business where I should be prepared for a chance of VMWare dying off?
Following the big tax cut most CEOs when asked said they'd spend the money on mergers and acquisitions. Expect to see more of these..
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odds are those were planned well in advance (I suppose it's possible you're a C level employee, in which case bully for you). I haven't heard a peep about wage increases except from Walmart, and aside from Fox News all the analysts agree those wage increases were because the economy's recovered enough they have to pay more to keep workers, nothing to do with the tax cuts.
Meanwhile the mergers and acquisitions are putting everybody's jobs at risk. After all, what's the first thing a company does after a M&A?
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before the inevitable crash. Hope you got somebody on the inside who lets you know when. Like these guys do.
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There's a lot more money in a public company to cheat into your pockets, again.
That would fine by me. Dell at one time 20 years ago used to care about consumer PCs and their customers. Ever try to buy one now off their website? You get a Dell customer ID, purchase ID, order ID. As if you were a corporate customer. But the first two mean nothing and will not help you until the order ID is issued. God forbid you have to call them. They have no understanding of English so they cannot help. Orders that say will ship in a week usually ship in a month. Assuming it ships at all. I finally gave up being a dell consumer. They just do not care.
I don't get it. If you have an IPO then you can sell shares. SOmething is missing here. I think the missing thing has to be that VMware will have to issue new shares. For something this big, It's existing shareholders will need to approve that or else the Board has to vested with the ability to sell a massive amount of new shares.
Some drink at the fountain of knowledge. Others just gargle.
Why is this even vaguely legal? If corporations are legally allowed to be persons, then why is it legal for one corporate person to buy and enslave another corporate person, and then turn around and sell that other person for profit?
We must hold corporate persons to the same standards of behavior and ethics as other persons. President Trump excepted, of course.
they fire redundant staff. Sometimes even if the staff isn't redundant they lay people off to recover the costs associated with the merger and make the survivors work harder. If you've never experienced this first hand you are either very young or very lucky.
Unemployment might not be as low as the stats make it look. If it really was 4% we should be seeing much, much stronger upward momentum on wages. So far it's barely keeping pace with inflation. Walmart's seems higher because they've been putting off pay raises for 7 or 8 years.
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Eat those words well, Michael Dell.
Apple has ZERO long-term debt, and $200 BEELION in the bank.
NOW who's laughing?!?
*shrugs*
This strategy worked well for Apple/NeXT, where NeXT bought Apple for negative $429 million. I'd imagine Icahn would approve. :-)
That meme has long passed its usefulness.
There was some technology-transfer, and some engineering and managerial talent came over, just like in any "tech" acquisition; but, other some significant parts of the OS (which is obviously what Apple REALLY wanted), Apple in no way became "NeXT".
1. No H. Ross Perot.
2. No change in marketing focus. NeXT was virtually unknown outside of large Universities. Apple was always much more "General Purpose".
3. No Display Postscript.
4. No Monochrome-Only monitors.
5. Longstanding backwards-compatibility with MacOS "Classic" through the CarbonLib API.
The list goes on.
*shrugs*
That's the way people who worked at Apple through the transition often jokingly described it. The current macOS is, despite your protestations, almost entirely derived from NeXT + new code. It shares almost no code with Mac OS 9 and earlier. Basically, NeXT acquired Apple's name and marketing department, and then slowly integrated Apple's engineers over the course of half a decade.
Regarding your five points specifically:
1. (Perot) Out of NeXT's board, Apple kept the ones with actual computer industry experience (SJ and Avie). Perot was just a financier, which Apple had no need for at the time.
2. (Marketing) Why would they change marketing focus? Apple was actually making money. The value of the reverse acquisition was in the Apple name and marketing, rather than in the tech.
3. (Display Postscript) Nor does it use any of the windowing and display management code from Mac OS 9. OS X's WindowServer tech was a ground-up rewrite, AFAIK.
4. Apple stopped being monochrome-only with the Macintosh II, way back in 1987, almost a decade before the NeXT reverse acquisition. The last monochrome Mac was the Classic II, which was discontinued in 1993, about three years before the NeXT reverse acquisition.
5. Carbon is only still around because of Adobe and a few other holdouts. Otherwise, it would have been gone by 10.2 or so. It was always intended to be temporary. As it stands, all but a few low-level bits of Carbon are unavailable in 64-bit apps, and will go away when 32-bit support goes away. Either way, using Carbon as proof that NeXT engineering didn't completely take over Apple's engineering is approximately equivalent to saying that two cars are the same because they use the same cupholders. :-)
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There's no need to resort to vulgar name calling when a couple of quotation marks will do fine. For instance, my old pal the Baroness tells me that this new president guy was known as Donald "John" Trump in the Dominatrix community. John in both senses of the word.
Fifty years of Yippie! 1968-2018
of constant productivity increases being told 'raises will come' rings hollow. GDP or not we'd recovered from the 2008 crash in less than 2 years. Wages dropped like a rock then as everybody (except CEOs) took paycuts. Every day I turn on the news and the stock market's hitting records but boo-hoo-hoo the GDP means we can't raise wages, meanwhile I read stuff like this
We're in full trickle down mode (minus the trickle down, which never happens, just ask Kansas). This is what happens when you give all the money to 1% of the country. GDP _can't_ grow because all the capital is tied up in offshore bank accounts. If you let them the Aristocracy will roll us back to another Dark Age, not out of spite, but because they'll claim all the money for themselves and our entire economy will grind to a halt.
I'll remind you that the best times in American Economic history were when we had a 90% top marginal rate.
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As predicted by My Comment back in 2013.
Unfortunately, these "going private" deals usually end with an IPO 2-3 years later. Same old compay with extra debt! The refinancing will make no difference to Dell, since "providing useful products and services at a profit" is what management should be concentrating on.
1) Use other people's money to buy up company
2) Pay self fees for being the Buyout fixer (Profit $$$)
3) Wait 2-3 years
4) Perform IPO
5) Pay self fees for being the IPO fixer (Profit $$$)
6) Sell new shares (Profit $$$)
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