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Broadcom’s VMware deal to net Michael Dell $21.65B in cash and stock

As the owner of 169,278,015 million shares of VMware—like change in his pocket—Dell Technologies CEO Michael Dell is due $21.65 billion in cash and stock following the close of VMware’s acquisition by Broadcom.

The payday—which represents one-third of the $61 billion that Broadcom is paying for the 37,500-employee virtualization leader—was disclosed by VMware in a regulatory filing last week with the Securities and Exchange Commission.

The disclosure included the amount of cash and Broadcom stock due to each member of VMware’s non-employee board of directors. Their payouts are each $2.9 million or below, with the newest member of the board receiving $128,555, or about 0.00059 percent of the chairman’s share.

According to Bloomberg Billionaires Index, Dell is the 24th richest person in the world, with a net worth of $45 billion as of October. This deal, on paper anyway, would add over $21 billion to Dell’s net worth, leap-frogging him ahead of American magnates like John Mars, all of the Walton children, and both sets of Koch billionaires to land just behind Mexico’s Carlos Slim at 13 on the Billionaire’s Index.

Broadcom’s takeover is far from being done, with the Federal Trade Commission engaged in what it calls a second request investigation of the merger. That investigation began in July. The acquisition cannot close until the investigation is complete.

Broadcom has had numerous run-ins with regulators in the U.S. and in Europe. It is currently two years into a seven-year settlement agreement with the European Commission, which allows agents to regularly check the company’s records to ensure it hasn’t lapsed back into giving reimbursements to customers for exclusive supply agreements, behavior that regulators called “illegal” and said stifled competition.

VMware board member Egon Durban, co-founder of the massive private equity firm Silver Lake, does not own VMware stock personally but controls 9.8 percent through his company’s ownership, filings stated.

Below are the cash-outs and stock offers that each member of VMware’s board will receive if the deal with Broadcom is approved.

Broadcom trades on the Nasdaq Exchange under the ticker symbol AVGO, a reference to Avago, which was the name of the company prior to 2015. CRN

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