Dell is looking forward to getting back its status as a public company according to a recent report by CNBC. Reportedly, Dell is considering of selling themselves to Palo Alto-based VMware which it already owns. And if this deal happens, it could be the biggest and unusual deal ever in the tech industry.
After running the company in private for more than 4 years, Dell is now possibly ready to return to public life without having to launch a new stock offering. Dell currently owns 80 percent of VMware, a company they acquired in 2015 and worth $55 billion. But it can sell itself to VMware in a process known as Reverse Merger.
You might remember that Dell once used to be a public company before it’s founder and CEO, Michael Dell took the company private for $24.4 billion in 2013 by teaming up with a private equity firm Silver Lake Management. If a reverse merger happens, it would provide a way to the investors who backed their bid to go private in 2013 to sell their shares on the public market and monetize their deal. It may also help Dell pay off some of its debt of $50 billion.
However, Dell is having second thoughts on including a public stock offering but hasn’t settled on it yet. There’s also a possibility that Dell would acquire the rest 20% stake of VMware which it doesn’t own currently. The company’s board is expected to meet this month to discuss options to increase revenue and raise funds.
Dell and VMware declined to comment on the report.