Shares of Vmware were down 9% on the report, which cited anonymous sources and noted that Dell was also considering other strategic options.
CNBC did not cite a specific price that VMware may pay for Dell in a reverse merger, but it noted that the value should theoretically be above the $67 billion EMC transaction, which stands as the largest tech Deal ever.
Michael Dell, who founded Dell as a college student by selling PCs out of his car, has said the decision to go private has been "fantastic" and allowed the company to avoid the "90-day shot clock" of constantly worrying about pleasing Wall Street with earnings results.
Still, after four years of revamping the business, Silver Lake may be looking to monetize the investment it made in Dell to take it private.
Dell and Silver Lake would receive shares of VMware under the deal being explored, which they could then sell on the public market, CNBC reported.
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