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: ‘The Headline Is: Don’t Expect Any Big Changes’
Michael Dell is confident that the spin-off will boost both his company through a greatly improved capital structure, including the paying down of billions in debt, while also keeping a firm hold of its successful VMware partnership.
“It does simplify our ownership structure and capital structures that unlocks shareholder value and drives down our debt. We’ve been paying down debt aggressively, and this will accelerate all of that,” he said, adding that the Dell-VMware relationship “has never been stronger”.
Most importantly, Dell said its massive customer and channel partner base won’t feel any negative impacts from the spin-off.
“From a customer and partner perspective, the headline is: don’t expect any big changes. It’s great news for all of our stakeholders,” said Michael Dell. “I’ve explained this to certainly hundreds of customers one-on-one and everybody’s like, ‘Great. We get it.’ … This absolutely creates additional growth opportunities for both Dell Technologies and for VMware.”