8 ms·
The whole Dell related ownership structure is just ... odd. Under the terms of the transaction, Pivotal's Class A common stockholders will receive $15.
by anarazel 7y ago
The whole Dell related ownership structure is just ... odd.
Under the terms of the transaction, Pivotal's Class A common
stockholders will receive $15.00 per share cash for each
share held, and Pivotal's Class B common stockholder, Dell
Technologies, will receive approximately 7.2 million shares
of VMware Class B common stock, at an exchange ratio of
0.0550 shares of VMware Class B common stock for each share
of Pivotal Class B common stock. This transaction, in
aggregate, results in an expected net cash payout for VMware
of $0.8 billion. The impact of equity issued to Dell
Technologies would increase its ownership stake in VMware by
approximately 0.34 percentage points to 81.09% based on the
shares currently outstanding. VMware currently holds 15
percent of fully-diluted outstanding shares of Pivotal. The
transaction is expected to be funded through cash on the
balance sheet, accessing short-term borrowing capacity, and
approximately 7.2 million shares of VMware Class B common
stock to Dell.
- xigency 7y agoFor mobile: > Under the terms of the transaction, Pivotal's Class A common stockholders will receive $15.00 per share cash for each share held, and Pivotal's Class B common stockholder, Dell Technologies, will receive approximately 7.2 million shares of VMware Class B common stock, at an exchange ratio of 0.0550 shares of VMware Class B common stock for each share of Pivotal Class B common stock. This transaction, in aggregate, results in an expected net cash payout for VMware of $0.8 billion. The impact of equity issued to Dell Technologies would increase its ownership stake in VMware by approximately 0.34 percentage points to 81.09% based on the shares currently outstanding. VMware currently holds 15 percent of fully-diluted outstanding shares of Pivotal. The transaction is expected to be funded through cash on the balance sheet, accessing short-term borrowing capacity, and approximately 7.2 million shares of VMware Class B common stock to Dell.
- gigatexal 7y agoThank you!
- raviolo 7y agoThis is why I enjoy HN community
- techslave 7y agobecause of the ability to quote TFA? personally i enjoy it because of insightful comments
- maimeowmeow 7y agoabsolutly not
- Vosporos 7y agohahaha good one
- tru3_power 7y agoCan anyone here chime in and explain what the purpose is of this?
- y2kenny 7y agoThe fixed line break probably make reading difficult on a small, narrow, variable width screen such as mobile.
- mcnichol 7y agoThe 21st century equivalent of "Who's on First"
- dmix 7y agoThe stock arrangement?
- techpop10 7y agoUltimately, this transfers shares to Dell that, most likely, provides liquidity that could be used to pay a little bit of their massive debt ($56B) that is choking them. Dell is in financial trouble. See https://seekingalpha.com/article/4278101-dell-technologies-much-debt https://seekingalpha.com/article/4278101-dell-technologies-m...
- oneplane 7y agoAside from the wall of english words I have a rather limited understanding of what it actually says. Looks like a lot of weird dealings to me. And if it's described in that way I wonder if it's a good idea at all.
- downrightmike 7y ago"Financial Engineering" Why make anything anymore when you can do tricks with, and for money?
- marketgod 7y agoI don't know if this was financial engineering because Dell bought EMC/VMWare but it was the smaller company, so this is a way to just increase the ownership they have rather than take cash out of the company which they use to make purchases. I'm not a FA expert, only TA, but that's my thought here.
- grkvlt 7y ago"Software Engineering" Why make anything anymore when you can do tricks with ones and zeroes, for money?
- geodel 7y agoThey do make stuff. Idea is to make next generation software worse than previous generation. Make money by fiddling with those agile JIRA/Storyboards and endless bug fixing.
- howlingfantods 7y agoIn simple English Context: Dell has large stakes in both Pivotal and VMware VMware buys Pivotal. Pivotal's regular shareholders get paid in cash per share ($15). Dell, which owns a separate class of shares, gets paid in VMware shares rather than cash. This is likely because Dell already has a large cash balance and they don't need any more cash.
- 7y ago
- momokoko 7y agoFinancial engineering at the highest level. Dell will be studied and admired for decades.
- RachelF 7y agoDell is already studied as a case of corruption. "Intel paid Dell in the form of rebates as part of an agreement to ensure that Dell would not use computer chips made by Advanced Micro Devices in its personal computers and computer servers, according to the civil charges."[1] Dell paid the SEC $100 million in penalties, Intel $1.45 billion. [1]https://www.nytimes.com/2010/07/23/business/23dell.html https://www.nytimes.com/2010/07/23/business/23dell.html
- kmlx 7y agofrom the year 2010
- scarface74 7y agoIntel paid all major PC vendors to advertise “Intel inside” and add stickers. Famously, Apple has always refused. https://youtu.be/COAOknlfMgI https://youtu.be/COAOknlfMgI
- rasz 7y ago$1.45 billion was European Commission (EC), and Intel not only never paid that, but actually managed to fight and bribe their way to possibility of overturning it altogether. https://www.telegraph.co.uk/technology/2017/09/06/victory-intel-eu-court-orders-11bn-fine-re-examined/ https://www.telegraph.co.uk/technology/2017/09/06/victory-in...
- zymhan 7y agoYeah my Dell account manager was good at acting clueless about this history when we discussed Dell's lack of AMD servers.
- latchkey 7y agohttps://www.theregister.co.uk/2019/07/29/pivotal_ceo_interview/ https://www.theregister.co.uk/2019/07/29/pivotal_ceo_intervi... "Pivotal trades at a loss but revenue is growing. Having said that, in its report to investors last month, after the release of its first quarter results for FY 2020, the company issued revenue projections that were lower than expected. Shares immediately suffered a more than 40 per cent fall and have not yet recovered. They're currently cruising along at about $10 apiece, five bucks below its 2018 IPO opening price of $15." Interesting that the IPO price was also $15.