How Pivotal was saved by a member of the Dell family, VMware – TechCrunch



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When Dell acquired EMC in 2016 for $ 67 billion, he created a complex consortium of interconnected organizations. Some, like VMware and Pivotal, operate as completely separate companies. They have their own board of directors, can acquire companies and are publicly traded. Yet they work closely with Dell, building partnerships where it makes sense. When Pivotal's share price fell recently, VMware saved the day by buying the company in decline for $ 2.7 billion yesterday.

Pivot was made public last year and sometimes had difficulties, but in June, the wheels began to break after a quarterly earnings report. The company owned what MarketWatch rightly called "a wreck of a quarter train".

How was it? So bad that his share price fell by 42% the day after he announced his profits. Although the quarter was not as good, with revenues up from the previous year, the forecast was another story. The company reduced its revenue forecast for 2020 from $ 40 million to $ 50 million, and its forecast for the upcoming 2Q19 was also considerably lower than the Wall Street consensus estimates.

The stock price plummeted from a high of $ 21.44 on May 30th to a low of $ 8.30 on August 14th. The company's market capitalization fell over the same period, from $ 5.828 billion on May 30 to $ 2.257 billion on August 14. That's when VMware admitted that it was considering buying the troubled company.

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