Title says it all
Dell
A Google search reveals that it is a potential Dell deal
People are going to be so shocked when the market drops 50% lol
Markets won't drop 50% over a span of a few hours though.
They certainly can and stocks have dropped 100% in a day :)
Last Friday VMW skyrocketed on rumors that Dell was considering buying out the remainder of VMware that they don't already own. Today it plummeted on rumors that what's left of VMware is considering buying out the entirety (or a portion of) Dell.
Michael Dell is screwing Vmware.
Michael Dell is going to fuck us over. A rough timeline of the "rumors" which are in fact reports from people on or connected to the boards of Dell and VMware who are talking to reporters off the record. On Friday the rumor went out that Dell would buy the rest of VMware it does not own. Since dell is a privately held company it would be an all cash deal. Since only 3 percent of VMW shares are not owned by Dell and other institutions, this demand for vmw shares overwhelmed supply. So the stock shot up $30 to $165. Then the leaks said Dell would also have an IPO. So the stock dropped to $150 (still $15 higher) because this would mean then vmw takeover would not be all cash. Then on Monday the leak was that instead vmw ( which accounts for most of the market value of Dell computer) would buy Dell. Since vmw would have to blow its cash and issue more shares, this would be a very bad deal. The only reason the stock price is still over $100 and not $25 is that most of the 3 percent of non institutional share holders don't believe it. But the word is out there and dell and vmw refuse to refute it. And until they do vmw stock will be in free fall. It's just yet another example of vmw getting fucked over by its owner. So tired of these cunts whether it is emc or dell.
Wait what? VMW accounts for most of the market value of Dell? That doesn't sound right.
Of course it is right. Market cap of DVMT is 55B. Market cap of VMW is 48B. Even if you believe DVMT investors don't count the market value of Dell before it bought EMC, given that part of Dell is just stupid server and desktop company it can't be worth more than a few billion dollars specially considering it is over $40B in debt. Lenovo has a market cap of $7B. VMW is the crown jewel of Dell and the rest is just turds. As was the case after emc bought vmw. That was the heist of century. Look at the market caps of hardware companies vs software companies. Only Apple is worth anything and that is due to its business model.
Awesome explanation thanks
Good time to buy?
If the rumors are true it will be a good time to sell short.
It was a bad code push.
Let me google it for you!
pretty sure he meant to say eli5 the same.