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Dell Confirms Possible IPO or VMware Merger

Yup, we're thinking about it, Dell says in an SEC filing, adding that it might do something else or just continue business as usual.

Mitch Wagner

February 2, 2018

3 Min Read
Dell Confirms Possible IPO or VMware Merger

Dell on Friday issued an SEC filing confirming earlier reports that it's considering financial restructuring, which could include going back on public markets, a merger with VMware -- in which it owns a majority stake -- or something else entirely.

Or Dell Technologies (Nasdaq: DELL) might make no changes at all to the way it does business, according to the SEC filing.

Not on the table, according to the filing: selling out to a third party, either for Dell or VMware Inc. (NYSE: VMW).

Dell is currently privately held, having taken itself off the public markets in 2013.

Figure 1: Photo by Jjpwiki (Own work) [CC BY-SA 4.0], via Wikimedia Commons Photo by Jjpwiki (Own work) [CC BY-SA 4.0], via Wikimedia Commons

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The Schedule 13D form filed with the SEC says: "Dell Technologies is evaluating potential business opportunities, including a potential public offering of Dell Technologies common stock or a potential business combination between Dell Technologies and [VMware]. Dell Technologies is also considering maintaining the status quo. The potential business opportunities currently being evaluated by Dell Technologies do not include the sale to a third party of Dell Technologies or [VMware]. The Reporting Persons have not determined which, if any, potential business opportunity to pursue and there can be no assurance that any potential business opportunity will be pursued, the terms thereof, or whether, if pursued, any such business opportunity would be consummated."

VMware issued a statement on Friday. "We are not in a position to speculate about the outcome of Dell's evaluation of potential business opportunities,"CEO Pat Gelsinger said in the statement. "Dell has been a tremendous partner since it became our majority owner and as we've accelerated our growth. We look forward to Dell's continued support as we work to execute our growth plans in the years ahead. The VMware management team remains laser-focused on serving our customers and partners with the best portfolio of software products and services across cloud, mobile, networking and security."

Gelsinger paraphrased: ¯\_(ツ)_/¯

Reports of Dell's strategic rumblings surfaced last week. (See Dell considering IPO, or buying all of VMware – reports.)

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About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

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