The news of Broadcom buying VMWare is currently in focus and I'm wondering if Dell selling VMW was a good decision in hindsight?
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Today Dells Market cap is 36b and VMware is 53b. Pretty obvious Dell needed cash.
if you truly want the answer to the question rather than some negative spin, here it is.
VMWare is very likely at the best it will be right now under the current ownership. It faces massive headwinds from cloud vendors and customers that are readily consuming alternative stacks native to AWS and Azure. Meanwhile it's traditional Datacentre and even the stop gap "Hybrids" are smaller and smaller.
So you are Mikey D, you've done a great job with getting them to this point, growing the user base and extracting a tonne of value from the org in dividends. Someone offers you a deal you cant refuse financially and remove that risk that the light starts to fade.
Equally, Broadcom can take VMware places that Dell cant go into non traditional and edge markets.
Thats why, it's a massive payout on a huge gamble and Dell won. He deserves the win, Vmware and Broadcom get a massive IP and user base and it makes sense for all. It isnt just about paying debt, thats already been done. This was an offer that was awesome for all. We would all do it.
VMware was best price of pie. Dell had to sell they definitely didn’t want to. Dell is left as pure hardware play company too bad.
SilverLake Partners wanted money back from MD. VMware was crown jewel of EMC deal.
They had to to pay down debt of EMC deal and also get there credit rating out of toilet.
Michael made all his money back and then some on the EMC deal, and grew core Dell considerably. It’s really not much more complicated than that.
OP are you thinking good move or bad move?
Yes, VMware is at the best it will be and best it will sell at.
why do you think that?