Data center News
The 10 Top Dell Technologies News Stories Of 2021 (So Far)
From CEO Michael Dell spreading his entrepreneurial wings to Apex and Dell’s spin-off of VMware, here are the top 10 Dell Technologies news stories of 2021.
3. Dell’s VMware Spin-Off Is Nearly Here: What You Need To Know
Within the next few months, Dell Technologies will spin-off its 81-percent stake in VMware to Dell Technologies shareholders. The move will create two standalone companies while hoping to still preserve the close partnerships between the two.
Here are three important things to know about Dell’s spinoff of VMware this year.
Dell said the spin-off will simplify its capital structures, help Dell achieve investment-grade credit rating and provide Dell with funding to reduce its core debt stemming from its $67 billion acquisition of EMC in 2016. As part of the deal, VMware will pay a special cash dividend of between $11.5 billion to $12 billion to the company’s shareholders, which will include around $9.5 billion for Dell Technologies.
“The key message for our customers and partners is that with this commercial agreement, nothing changes for at least the next five and a half years,” Michael Dell said earlier this year. “Our current momentum in roadmaps and R&D innovation, all the work we’re doing together with sales and support -- all that moves forward full steam ahead.”
The transaction is slated to take place during the fourth quarter of 2021.