Reply to post: Winners and Losers if Dell acquires DVMT

Dell Tech: We have a plan B for bog standard IPO

Anonymous Coward
Anonymous Coward

Winners and Losers if Dell acquires DVMT

This is all about who ends up paying off EMC acquisition debt. Raising interest rates will ramp up the cost of that debt.

Winners:

-Michael Dell (Obviously)

-Silver Lake (Obviously)

-Dell Technologies (pressure on *margins* will reduced on servers and storage which are struggling)

Losers:

-DVMT shareholders (they could do better)

-VMware (since they will pick up the debt from Dell buying EMC)

-VMware employees (RSU valuation will be driven down dramatically)

-VMware customers (get ready for more Oracle-like pricing to pay off that debt)

-VMware ecosystem partners (your reselling VMware will help seal your own death as you will be feeding the Dell monster)

On the other hand, a Dell IPO means investors will carry the debt... and it will be a loooooong slog for Dell.

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