Some of you may remember that Dell went private in 2013 after a $25 billion buyout by founder and CEO Michael Dell and investment firm Silver Lake. There were reports a few months back that the company was thinking about going public once again and according to a new report, Dell is going to become a publicly traded company once again following a $22 billion stock buyout which will leave Michael Dell and Silver Lake in charge of the company.
Dell’s route to becoming a publicly traded company once again involves buying its own tracking stock which will offer a “new class” of public stock in exchange. The stock will be traded on the NYSE. Dell says that the total market capitalization of this move is $21.7 billion.
The deal enables the two partners to solidify their control on VMWare which they got when Dell acquired EMC back in 2015. The move will enable Dell to pay off its debt at a faster rate than it has been able to so far.
The earlier reports indicated that Dell was also considering an unusual reverse merger in which the company would have sold itself to VMWare. Dell had considered an IPO alongside this “negotiated business combination” before settling on the share exchange it has announced today.
Filed in . Read more about Dell. Source: investors.delltechnologies