Skip to main content

Dell could be set to sell itself to VMware

(Image credit: Image Credit: Flickr / Toshiyuki IMAI)

Dell could be acquired by a company it already controls, reports have claimed.

According to reports, Dell is already in talks with Vmware for a reverse-merger which would be one of the biggest technology deals ever seen.

At the moment, Dell owns 80 per cent of Vmware, which it acquired together with EMC back in 

Rumours of a Dell sale first emerged last week, with a possible IPO named as one way Dell could raise funds and fund future expansion. The company is also looking to pay off some of its $50 billion debt, and avoid a formal listing.

There is very little talk of the actual price, but CNBC pointed out that Dell is worth $60 billion. A couple of different options are on the table, people familiar with the matter have said, and the reverse-merger is being perceived as one of the “more audacious ones”.

VMware’s revenue has seen consistent growth over the years, however it seems as this progress is slowing down. Annual sales rose 6.7 per cent in 2016, compared to the year before, after six years of having double-digit growth. The company’s net income of $1.2 billion, which happened in 2016, was an all-time high for the company. However, analysts expect 2017 to be even better.

Sead Fadilpašić
Sead Fadilpašić

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.