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Dell-VMware Spin-Off Deal: The 4 Biggest Myths And Rumors

CRN breaks down the four biggest myths surrounding Dell Technologies’ future with VMware with Dell’s upcoming spin-off of its 81 percent stake in VMware.

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Dell Will No Longer Own A Majority Stake In VMware

Dell Technologies is selling its 81 percent stake in VMware to Dell shareholders, the largest of which is Michael Dell himself.

Sources confirmed to CRN that after the Dell-VMware spin-off is complete, Michael Dell will own approximately 41 percent of VMware. Additionally, Dell’s longtime private equity partner Silver Lake will hold an 11 percent stake in VMware following the spin-off, sources said.

This means that Michael Dell and his private equity partner will own a controlling stake of approximately 52 percent of VMware once the transaction closes.

In an interview with CRN in September, Michael Dell wanted to clear up any confusion about whether Dell was selling off VMware.

“So this is different from selling VMware — we are not selling VMware, by the way. Some people are a little confused about that,” Dell said. “Our core business is healthy. It’s got runway to continue to generate growth for years to come regardless of what structure we use, but this is certainly another example of our focus on creating value for the benefit of all of our shareholders.”

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