Data center News
VMware’s Spin-Off From Dell Is Nearing: 8 Huge Things To Know
From VMware’s $11.5 billion special dividend payout to Dell and M&A ahead, to how shareholders and Dell will benefit, here are eight big things you need to know about Dell Technologies’ spin-off of VMware set to be complete Nov. 1.
Michael Dell And Silver Lake To Own More Than Half Of VMware
Dell Technologies founder, chairman and CEO Michael Dell will become the single largest shareholder of VMware stock post spin-off.
With Michael Dell being the largest Dell Technologies shareholder today, he is expected to own approximately 42 percent stake in VMware when the deal is complete.
Additionally, Dell’s private equity partner Silver Lake will hold about 11 percent share in VMware when the transaction is finished.
This means that Michael Dell and Silver Lake will retain an approximately 53 percent majority stake in VMware.
Michael Dell is also currently VMware’s chairman of the board, a position he will keep post spin-off.
“Look, I’ll continue to be the chairman of both companies and the largest shareholder of both companies,” Michael Dell recently told CRN in an interview. “Dell and VMware are going to partner super closely together.”