VMware, Inc. Stock Surges on Potential Dell Deal

VMware, Inc. (NYSE:VMW) stock was on the rise today due to reports about a possible deal with Dell.

VMware, Inc. Stock Surges on Potential Dell Deal

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Recent reports claim that Dell is considering acquiring the remainder of VMware, Inc. that it doesn’t already own. The company acquired a majority stake in VMW when it bought EMC Corp. back in 2016 for $67 billion.

The idea of buying VMware, Inc. is being tossed around by Dell as it considers its options. The reports claim that the tech company may also have an interest in going public. The company went private in 2013.

According to the reports, Dell is looking for a way to increase its growth and holding an IPO may be able to help with that. The company may want to use the funds to help pay off its considerable debt. It has $3 billion of bonds that will mature in 2018 and another $4.35 billion maturing next year, reports Bloomberg.

Dell is refusing to comment on the rumors, but we may learn more later this month. That’s when the reports claim that the company’s Board of Directors will come together to discuss the possibility of an IPO or acquiring VMware, Inc.

The decision to take Dell private in 2013 likely helped the company deal with the decline in the computer market. However, the market appears to finally be stabilizing, which could be part of the reason the company has an interest in going public again.

News of a possible deal with Dell sent shares of VMW stock soaring 18% as of Friday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/01/dell-may-buy-vmware/.

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