You’ve heard that the rich keep getting richer? Well, that’s definitely the case with Austin tech billionaire Michael Dell.
News this week of Round Rock-based Dell Technologies’ decision to spin off its 81 percent stake in software company VMware triggered a massive surge in Dell’s net worth, according to the Bloomberg news service. The Bloomberg Billionaires Index pegs Dell’s net worth at $50.7 billion as of April 15. It’s the first time his net worth has surpassed $50 billion. In the world’s pecking order of billionaires, Dell ranks 26th, Bloomberg says.
This year alone, Dell’s net worth has skyrocketed by $10.6 billion, or more than 25 percent, Bloomberg says. To put that into perspective, Bloomberg estimates the fortune of Austin vodka entrepreneur Bert “Tito” Beveridge at $9.68 billion.
What caused the massive bump in Dell’s net worth? Dell Technologies’ stock soared to a record high this week following the VMware announcement. Meanwhile, VMware’s stock also shot up.
For years, Dell had reigned as the richest person in Austin. Now, Tesla and SpaceX entrepreneur Elon Musk holds that title. The Bloomberg Billionaires Index puts Musk’s net worth at $189 billion, making him the world’s second richest person (behind Amazon’s Jeff Bezos). Just this year, Musk’s fortune has grown by $19.2 billion.
Musk also knocked Dell down a notch on the list of Texas billionaires. Walmart heiress Alice Walton now ranks second ($62 billion) in Texas behind Musk, Bloomberg says. That pushes Dell down to the No. 3 position. Dell is closing the wealth gap with Walton, though. Based on Bloomberg’s figures, Dell sits $11.3 billion behind Walton.
Ten Austin billionaires appeared on Forbes’ recently released list of the world’s richest people, with Musk and Dell topping the local ranking.