Michael Dell is working on the details of a reverse-merger with VMware, and here’s what it will probably look like
An announcement on @MichaelDell s strategic options is likely more than a month away. Dell is considering a transaction that will roll up @Dell, @VMware and Dell’s publicly-traded tracking stock. An IPO is seen as less likely than a Dell reverse merger with @VMware.
Michael Dell and his advisers are beginning to focus on the details of a reverse merger with VMware to take Dell Technologies back into the public market, though any final decision or deal is more than a month away, said people familiar with the matter.
Dell and VMware are considering an equity exchange, which may or may not include some cash, that would give Dell access to all of VMware’s cash flow by merging the companies together as a new publicly traded entity.
A combined Dell-VMware would also acquire the Dell tracking stock (ticker: DVMT) at a premium, the people said, who asked not to be named because the discussions are private. That transaction would probably also be completed as a stock swap, exchanging the new company’s shares for the tracker, said the people.