Dell Remerges in the Public Markets

Brooke Sutherland, a Bloomberg Opinion columnist, discussed the recent plans by Dell Technologies Inc. to trade publicly again, re-emerging five years since its leveraged buyout. Dell hopes that it can come back to the public markets financially stronger and more diverse despite being burdened by debt.

Related: Dell Wants to Go Public Again, Tech ETFs Pop

Points discussed:

  • Dell is going public again by acquiring a tracking stock VMWare Inc.
  • There are a lot of moving pieces in terms of going public–a consolidation of interests within Dell–it helps lessen the complexity
  • The latest move does not mitigate Dell’s debt load
  • The need to go public is more of a move to satisfy VMWare stakeholders who want to remain independent from Dell
  • Dell’s foray into cloud computing may help its market share with VMWare, but it won’t solve its debt issues
  • Down the road, a governance agreement could allow Dell and VMWare to operate independently
  • The demand for the new Dell stock is in question on a going-forward basis

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