5 Keys To Dell’s Proposed VMware Stock Spinoff Deal
If all goes accordingly, Dell Technologies will spin off its 81 percent majority stake in VMware to Dell Technologies shareholders sometime late next year, giving the $91 billion company more capital, new investment opportunities and a more powerful R&D budget.
Last week, the Round Rock, Texas-based worldwide leader in storage, servers and hyperconverged infrastructure confirmed that it “is in an early stage” of exploring the possibility of spinning off its 81 percent equity share in VMware, which it acquired in 2016 through its $67 billion purchase of EMC.
“A spin-off could benefit both Dell Technologies and VMware shareholders, team members, customers and partners by simplifying capital structures and creating additional long-term enterprise value,” said Dell in a statement.
Here are the five most important things to know about what Dell hopes to accomplish by spinning off its VMware shares to Dell Technologies shareholders.