Homepage Rankings and Research Companies Channelcast Marketing Matters CRNtv Events Acronis #CyberFit Summit 2021 Avaya Newsroom Experiences That Matter Cisco Partner Summit Digital 2020 Intel Partner Connect 2021

VMware And Dell Layoffs: 5 Big Things You Need To Know

Here are the five most important things to know about the recent round of layoffs at Dell Technologies and VMware.

Back 1 ... 3   4   5   6  

Dell’s Plan To Spin Off VMware Stake

Dell Technologies confirmed last month that it is in the early stages of exploring a “spin-off” of its 81 percent stake in VMware. However, CRN has discovered that Dell is looking to sell its stake of VMware to current Dell Technologies shareholders.

Dell Technologies founder and CEO and Michael Dell and private equity partner Silver Lake are looking into retaining a controlling stake in VMware. If all goes accordingly, Dell will spin off its 81 percent stake in VMware to Dell shareholders sometime late next year, with Michael Dell—who is also chairman of VMware—and Silver Lake retaining an approximate 53 percent majority stake in VMWare.

If the spin-off is completed, Michael Dell will own approximately 42 percent of VMware, while Silver Lake will hold about 11 percent, sources said.

Michael Dell currently owns 52 percent of Dell Technologies while Silver Lake owns nearly 14 percent, according to a Dell Technologies Proxy filing in May with the U.S. Securities and Exchange Commission.

By spinning off its 81 percent stake in VMware to Dell Technologies shareholders, Dell Technologies will be able to improve its investment grade rating, pay down its $48 billion in debt, keep its highly successful partnership with VMware intact, attract new investors and clean up its capital structure, sources and analysts said.

Back 1 ... 3   4   5   6  

sponsored resources