The whole Dell related ownership structure is just ... odd.<p><pre><code> 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.</code></pre>
Isn't this more of a consolidation?
My understanding was that Pivotal was spun out of EMC and included some assets that were formerly under VMWare.
Also Dell Technologies owns a majority stake in both of them.
I have never heard of Carbon black... While researching this I also found that VMWare acquired heptio for 550m !? Wow. Isn't pivotal a massive company? It's value is just 4 times that of a 2 year startup?
Maybe VMware should have used that money to develop their own kernel instead of violating Linux' GPL licensing.<p>But it's probably cheaper still to buy that off with a juicy "Platinum Member" seat at the Linux Foundation.
I'm not surprised at the Pivotal acquisition. VMware is determined to succeed at Kubernetes. There is already a lot of integration with Pivotal's Kubernetes distribution both at a technical as well as a business level.
Uh, PVTL's market cap is $3.73B. Isn't that one hell of a discount? Wouldn't shareholders sue? Can someone explain this please? I feel dumb.
Very tangential question that hit me while reading the comments:
Is the current scenario possible: company A owns 10% of company B, and company B owns 10% of company A.
Does that mean getting the valuation of both companies require solving algebra?
Or is this outright prevented by other methods, like the board of A owns most of A and 10% of B?
I have a question in regards of this.<p>If company A owns/purchased license for a product issued by company C.<p>The license clearly states:<p>"Licensee may not resell, rent, lease … the Source Code or any part of it … "<p>And now company A gets sold to company B.<p>What should happen in this case with the License? Whom the License belongs now? Shall it be revoked or what?<p>How to deal with such situations in practice?
In this interview, Pivotal CEO Rob Mee talks about the challenges with managing the adoption of Kubernetes.<p><a href="https://www.theregister.co.uk/2019/07/29/pivotal_ceo_interview/" rel="nofollow">https://www.theregister.co.uk/2019/07/29/pivotal_ceo_intervi...</a>
It’ll be interesting to see how things pan out regarding k8 whether companies will host it on VMs or bare metal. I guess VMWare are hoping to still be in the mix else k8 has the potential to completely erode their vsphere business.