In an effort to raise funds and boost its revenue, Dell Technologies is considering a number of strategic options with a public stock offering even being a possibility.
Sources close to the matter have revealed that the firm's board will meet later this month to discuss the company's options going forward. However, Dell may forego these options altogether and continue on its current trajectory.
Dell's founder and chief executive officer Michael Dell took the company private in 2013 through a leveraged buyout alongside Silver Lake Management LLC. This allowed the firm to cut costs and take risks that it would not have been able to do as a public company.
Just three years later in 2016, Dell purchased the storage-technology provider EMC along with its majority stake in VMware. In order to complete the deal, the firm was forced to take on a massive load of debt and this why it is now considering new ways to raise capital that would be used to pay off its $46bn in debt.
Dell may also decide to buy out the remaining shares of VMware as the data-centre software vendor's shares have risen by more that 60 per cent over the past year.
The firm could also sell public shares of its cloud-computing company, Pivotal Software which was once a joint venture between VMware, EMC and General Electric. Last year Dell met with bankers to discuss this possibility and was informed that the company could be valued as high as $5bn to $7bn.
We will likely learn more on Dell's next course of action when it meets with shareholders next month.
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