Rumor: Dell Considers IPO and Acquisitions

Dell is considering major changes for the company’s future, according to Reuters. The board of directors would consider, among other things, an IPO, acquisitions and a transaction with VMware to grow.

The board of directors will meet this month to discuss the steps to be taken, Reuters reports citing sources familiar with the plans. In addition to an IPO and acquisitions to generate more revenue, the company would consider a sale or IPO of its cloud software business Pivotal Software.

In addition, a transaction with VMware may also be on the table. Dell already has a majority stake in this virtualization company. Dell would be under pressure to make changes going forward, as the sizable acquisition of business services firm EMC has not yet delivered what was expected.

That acquisition involved an amount of $67 billion in 2015, leaving Dell with a debt burden. With an IPO, Dell could raise money to pay it off. In 2013, founder Michael Dell took his company off the stock exchange through a buy-out, in order to be able to determine the course of the company more independently.