Dive Brief:
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Dell Technologies is considering to either file to become a publicly traded company or execute a merger with VMware, according to a VMware SEC filing Friday.
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Dell, however, will not sell itself or its stake in VMware, reports Reuters. The company already owns 80% of VMware.
- VMware CEO Pat Gelsinger said the the company would not "speculate" on Dell's strategic considerations, according to a company statement.
Dive Insight:
The SEC filing essentially confirmed the speculative reports that emerged last week. Dell Technologies was said to be reevaluating the direction of its strategic future by considering to file for an initial public offering (IPO) or potential unit sales.
A "reverse-merger" would grant Dell the ability to become public without filing for an IPO. To make the deal possible, VMware would have to issue shares to the owner of Dell, Michael Dell, and the private company that owns Dell, Silver Lake.
Dell filed to go private in 2013. In 2016, the company completed a $67 billion merger with EMC. For its strategic future, Dell will have to consider the more than $40 million in accumulated debt from the merger.
