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.

Comments

Corporate Raiders

[Anonymous Coward]

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.

Re:I only have one question

[Rob Riggs]

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?

If you are a shareholder in VMware, you're about to be screwed. If you think Dell will hang like an albatross around VMware's neck and you are a VMware customer, you're screwed. If you are an investor in Dell, your are about to spread the cost of your fuck-up on the public market, and specifically on VMware's other shareholders. (See stories hitting the wire that look like "VMware plunges on news...)