Dell Considering Reverse Merger With VMware

Dell and VMware are in talks to complete a merger. However; this is not your typical merger where one company simply buys another. VMware is a publicly traded company, and Dell is not. Now Dell can buy all of VMware’s shares and then go public themselves. Dell recently acquired EMC, and through the acquisition they own 81% of VMware.

Dell has a major tax debt problem and is exploring this merger as a way to solve it. Essentially what would happen is Dell would buy VMware, and then on paper VMware would somehow own Dell.

By VMware owning Dell, Dell would become publicaly traded without filing for an IPO. Dell owes Uncle Sam 50 billion dollars and this is one of the solutions they are looking into to solve their debt.

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