Dell announced this afternoon that it was exiting VMware, a move that has been questionable for some time. Dell, which acquired VMware as part of a massive $ 67 billion EMC acquisition in 2015, owns about 80% of the stock and the company received between $ 9.3 and $ 9.7 billion when the deal closes later this year. Expected to be received.
Even when he was part of EMC, VMware had a special position in that it functioned as a separate entity with its executive team, the board of directors, and the stock was also sold separately.
“The two companies will remain important partners, giving Dell Technologies a distinct advantage in how we bring solutions to customers. At the same time, Dell Technologies embraces new opportunities through an open ecosystem to modernize its core infrastructure and PC businesses and grow into hybrid and private cloud, edge and telecom, Dell CEO Michael Dell said in a statement. Will continue
While a lot of CEOs speak in that statement, it does seem to imply that the move is mostly administrative because companies will continue to work together even after the off-spin is official. Dell will remain chairman of both companies. What’s more, the company’s plan is to use the cash proceeds from the deal to help pay off the massive debt that still remains from the EMC deal.
This is a breaking story. We will have it soon.