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Dell, VMware Reverse Merger Details: Negotiations Heating Up?

Partner Keynote, Oracle Keynote, Moscone North, Hall D

Michael Dell and his advisers are beginning to focus on the details of a reverse merger with VMware to take Dell Technologies back into the public market, though an actual decision or deal is more than a month away, according to CNBC. If the reverse merger occurs, it would essentially return Dell to public markets.

According to the latest CNBC report:

"Dell and VMware are considering an equity exchange, which may or may not include some cash, that would give Dell access to all of VMware's cash flow by merging the companies together as a new publicly traded entity."

It's a safe bet Dell would like to announce a potential reverse merge during or before Dell EMC World 2018, multiple sources close to the Austin company tell ChannelE2E. That conference is set for April 30 in Las Vegas.

Dell and VMware in February both confirmed their efforts to explore potential business opportunities and synergies, including the hypothetical reverse merger move. The disclosures surfaced in SEC filing.

Dell already owns 80 percent of VMware. Still, rumors about the potential reverse merger pressured VMware shares in February. VMware's business has regained momentum over the past year as the server virtualization company successfully extended in storage virtualization (vSAN) and network virtualization (NSX).

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.