Report: Dell and VMware to Mull Combination

|By:, SA News Editor

Dell and VMware (NYSE:VMW) are set to explore options that include a merger of the companies, according to three people familiar with the matter, Reuters reported overnight.

The sources say Dell, which owns 80% of VMware, will announce Friday that several possibilities are on the table, among them a potential reverse merger with VMware (i.e., VMware would buy out Dell), an initial public offering or asset divestitures.

The reported plans come as Dell looks into alternative growth options in the wake of its heavily debt-financed 2016 takeout of EMC Corp.

VMware closed Thursday up 1.5% and was recently flat in the premarket.

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