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Dell’s VMware Spin-off: 5 Big Things To Know

The move to create two standalone companies will preserve the close partnership between Dell and VMware around technology development, sales and marketing, according to Dell Technologies.

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While both Dell Technologies and VMware are publicly traded companies, Dell has held its 81-percent stake in VMware since its $67 billion acquisition of EMC Corp. in September 2016. EMC had owned Palo Alto, Calif.-based VMware since 2004.

Reports first emerged last June that Round Rock, Texas-based Dell Technologies was considering a spin-off of its VMware stock holding–with Dell confirming the following month that it was at an “early stage” of evaluating the idea.

In January, Michael Dell, chairman and CEO of Dell Technologies, said in a statement to CRN that nothing was changing with the potential VMware spin-off with the departure of VMware CEO Pat Gelsinger to become chief executive of Intel.

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