Wednesday, April 14, 2021

VMware, Dell split to form independent firms

After many months of wrangling, Dell Technologies says it is spinning off its ownership of VMware to create two standalone companies.

While it gives both companies more financial freedom, the new relationship should have no immediate effect on enterprise customers, but that could come down the road.

Dell has had an 81% equity ownership of VMware since its 2016, $67 billion purchase of  EMC, which owned VMware. Under terms of the planned spin-off, VMware will distribute a cash dividend of $11.5 - $12 billion to all VMware shareholders, which includes about $9.7 billion to Dell Technologies, the companies stated.

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Thanks to Michael Cooney (see source)

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