In summary, Dell just acquired EMC (parent company of VMWare) for $67 billion. This automatically makes Dell the world’s largest private company.
Someone still needs to explain where the money for the acquisition came from, and how Dell - the smaller fish - is the leader in the combined company. I hate it when I don’t understand purchases like these.
3 Likes
Well, it’s obvious that we haven’t heard 10% of the story yet. And for a privately-owned company, I doubt if we will ever receive more information about the acquisition.
That can’t be a secret for long, I suppose. Dell’s dire financials have been common knowledge since 2012. Perhaps the mentioned partners had a hand in dropping some “cash”. Anyway…
Resident warlord is confused. Wow.
Ode. Go to bed Uzo. 
I just can’t seem to get my head around the whole thing. Is it not the same DELL that had to raise money from Gates/MS to help get the company off public?
It’s not like $67 billion is flying around. Or is it?
1 Like
Exactly. The same investment firm (Silver Lake Partners) bought them for for $25bn in 2013.
Well, we live in a world full of abracadabras from VC firms. This sounds like the voice of Dell but feels like the hand of a VC firm. So at the end of the day, the blessings and credit will go to Dell. 
I didn’t even know Dell had all this money. Explanation anyone?
The size of the firms does not really matter in mergers & acquisitions but it is a question of who has the cash to make the move. It is usually more strategic than anything else. Dell has been struggling for a while, hence going private in the first place. They look like data storage and warehousing is their next strategic focus.
No one has $67b lying on the shelf.
Dell is privately owned by Mr Dell and his private equity partners. Of the $67 odd billions, confirmed $20-24b is debt (likely borrowed from somewhere usually banks (still gap to be filled here)
To make up the balance the owners will use their cash reserves. They will likely bring in more partners to cough out some more $billions
As in acquisitions, some assets will have to be sold to get some more cash to fund the acquisition - called asset spin-off. (Crazy world of M & A) VMware was said to be identified for such spin off - mind you, its market capitalisation is ~$33b!
A lot of suppositions and second guessing so we will have to wait for more information
Here is a view from one of their biggest ‘enemies’
1 Like
We have two partners in the deal, MSD Capital and Silver Lake. Dell is reported more in the press because of its relation to EMC (and guessed the deal is made to complement Dell). Dell is really smaller when compared to EMC but it’s not the business buying the Cloud Service Company, the owners and investors of Dell instead.
Sometime last week, it was reported that Silver Lake had approached a couple of businesses on the sale of Dell’s PC business arm. Could that be the reason they have taken over EMC because of a possible switch to a more focused cloud service?
But still hand-folded watching what happens as the investors expresses hopes in this combination.
Atleast Joe Tucci will have some rest and Michael Dell adding more functions. Goodluck to all parties involved. I’m still a fan of Dell.
I’d shut it down and give the money back to the shareholders," -Michael Dell on Apple back in the day.