Monday Hot Take [Episode 6]: Dell Selling VMware?

Here are the show notes for this week’s Monday Hot Take: Is Dell Selling Off VMware? Will Dell actually sell of its majority share in VMware, and what will that mean for both companies? Let me know what you think in the comments!

https://www.youtube.com/watch?v=X_GPHEjnX58&feature=youtu.be

Hot Take: Is Dell Selling VMware?

I’m the first to admit that I don’t get the stock market, I really don’t understand it and it seems like you’re playing with your money. I have a Tech Breakfast Podcast episode queued up on the topic, hope that helps me out!

I’m a VMware shareholder, so of course I’m trying to understand the news that came out last week. Here’s what I *think* I know:

  • Dell’s shares in VMware are somehow related to the old EMC tracking stock.
  • This is about paying down (or moving) the debt incurred from the EMC acquisition. VMware would have to pay Dell a certain amount as a cash dividend, and that cash would get used to pay the debt down. The trick is not to overburden VMware with debt.
  • Silverlake apparently likes the idea, they own enough shares in Dell that they can put a damper on things.

This CRN article was good, but if you want to get more into the nitty gritty, check out Dave Vellante’s analysis over on Silicon Angle.

Honestly the Dell EMC – VMware relationship is still messy. Dell people think Dell owns VMware, VMware people are fiercely independent (which is a GOOD thing for the industry!). Hopefully this would spin out the crazy relationship status too.

Events

  • Defcon. No it hasn’t been cancelled, it’s running in safe mode this year.  I’m trying to wrap my brain around what I want to attend. In addition to the conference, all of the villages are also going to host content. It is going to be EPIC. But attending will take some planning, you’ll have to know where to wander in order to get lost. Or something. So much going on just with the villages, they are sharing info in very diverse ways: website, twitter, twitch, discord — you really have to choose an adventure and stick with it.
  • PRO TIP FOR ATTENDING VIRTUAL CONFERENCES: I really recommend blocking your calendars, just like you would if you attended the event in person. 

Info Sources

I learned a new word this weekend – malinformation. It came from an article with a title that didn’t do the content justice. That’s the data source hack: make sure you’re following good people: scientiests, professors, leaders in their fields who have domain expertise.This article was titled “what you need to know about the twitter attack, but it focused itself around this idea of malinformation.

I am going to start sharing the podcasts I listen to as well. Arlan Hamilton is a venture capitalist who has a background very similar to mine. Her podcast is called Your First Million. She talks to successful entrepreneurs about how they made their first million. What I really like is the questions she asks and the angles the conversations take, it is all stuff I need to hear as a budding entrepreneur myself.

Real Talk

This sort of financial announcement may be great for Wall Street, but it really can make people inside the organizations really anxious. So for all of my friends still at VMware and Dell, y’all be kind to yourselves!

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By Gina Minks

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