Report: VMware May Buy Dell in Biggest-Ever Tech Deal

We're less than a month into 2022, and there'southward already a potential new contender for the largest tech deal ever. According to CNBC, Dell is because a move to sell itself to VMware in a massive reverse merger that could exceed the record-setting $67 billion Dell paid to purchase EMC in 2022.

Dell did not immediately respond to a request for annotate; VMware declined to comment.

Why would Dell, which already owns fourscore percent of VMware, sell itself back to the smaller visitor? There are a few compelling reasons.

The contrary merger would allow Dell to once once again become a public company without having to undergo a fresh initial public offering (IPO). The visitor went private in 2022 in a $24.four billion deal that gave ownership control to founder Michael Dell and individual equity firm Silvery Lake Partners. Dell is reportedly conveying around $50 million in debt, merely going public through VMware would let Dell and Silver Lake to sell back some of their shares publicly, both to offset the debt and to cash in themselves.

The other angle here is all well-nigh the cloud. VMware remains profitable and with growing revenue, simply the company's virtualized platform is losing business to public cloud infrastructure players such equally Amazon Web Services and Microsoft Azure.

The visitor relented and now allows customers to run VMware software and virtual machines (VMs) on AWS. Dell too sells a lot more than than laptops present, including various cloud, data center, and Net of Things (IoT) solutions and services. The merger would theoretically allow the companies to realign their combined infrastructure and software-equally-a-service (SaaS) portfolios.

CNBC reports that Dell'south board of directors will run across later this month to consider several options, including the reverse merger.

About Rob Marvin

Rob Marvin

Rob Marvin is PCMag'south Acquaintance Features Editor. He writes features, news, and trend stories on all manner of emerging technologies. Beats include: startups, business and venture capital, blockchain and cryptocurrencies, AI, augmented and virtual reality, IoT and automation, legal cannabis tech, social media, streaming, security, mobile commerce, Thou&A, and amusement. Rob was previously Assistant Editor and Associate Editor in PCMag's Concern section. Prior to that, he served as an editor at SD Times. He graduated from Syracuse University's S.I. Newhouse School of Public Communications. You can also find his business and tech coverage on Entrepreneur and Fox Business organization. Rob is as well an unabashed nerd who does occasional entertainment writing for …