Dell confirms VMWare cunning plan

michael-dell-2Dell Technologies CEO Michael Dell has confirmed that the vendor is considering floating on the New York Stock Exchange or engineering a deal that will see it acquired by VMware.

The move will mean a shake-up of its channel which is still recovering from its integration with EMC.

A filing made by VMware to the US Securities and Exchange Commission said 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 the issuer (VMware).”

Accompanying the filing was an internal memo sent by Michael Dell to Dell Technologies employees.

In the memo, the CEO moved to assure employees that the potential restructuring of the group’s ownership was coming from a position of strength, rather than necessity.

He said: “Today, Dell Technologies has made a 13D filing that makes public that our Board of Directors is evaluating potential business opportunities, including business as usual – continue with the existing ownership structure; [a] public offering (IPO) of Dell Technologies Common Stock; [and a] business combination with VMware.”

VMware CEO (Kicking) Pat Gelsinger also released a statement, distancing the vendor from discussions occurring at its parent company.

“We are not in a position to speculate on the outcome of Dell’s evaluation of potential business opportunities. Dell has been a tremendous partner since it became our majority owner and as we’ve accelerated our growth,” he said.

“We look forward to Dell’s continued support as we work to execute our growth plans in the years ahead.”

Dell is obliged to make a statement regarding the discussions because it owns around 82 percent of VMware.

VMware’s share price has plummeted over 20 percent and is yet to recover.

Dell, his outfit’s channel partner revenue, was “up to double digits in [the] first half of FY18”.