Dell might sell itself to a company it already owns

The famous multinational computer technology company, Dell, might reportedly sell itself to a company it already owns, after living a private company life for over four years.

People familiar with this matter mentioned that Dell might soon emerge as a public company via a reverse-merger with a $60 billion cloud computing company, VMware, a virtual machine maker, which it already controls. Through this reverse merger, VMware will buy its parent company Dell letting it go to be traded publicly with no need to go through formal listings or new stock offerings.

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As per CNBC, if successful, this contract would be marked as the biggest one ever in tech industry history. This deal will provide investors, who initially supported Dell’s move to go private in 2013, a chance to monetize their deal and will also help Dell to pay its debt of around $50 billion.

Moreover, there are few other substitutes as well such as a straightforward public offering or other takeovers. If happened, this reverse merger would be a very brave step for Dell, allowing it to help cut costs and raising funds. Dell and VMware refused to comment, reported Engagdet.