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How much does Dell own of VMware?

How much does Dell own of VMware?

Dell owns a 81% stake in VMware, which it picked up in its 2016 acquisition of EMC Corp. for $67 billion.

What is the relationship between Dell and VMware?

Dell Tech and VMware agreed to a 5-year commercial agreement, with optional annual extensions that “preserves and enhances their strategic partnership to deliver joint customer value” using “Dell go-to-market scale, VMware software innovation and collaboration on solutions.” Specifically, Dell will continue to sell …

Why is Dell selling VMware?

“By spinning off VMware, we expect to drive additional growth opportunities for Dell Technologies as well as VMware, and unlock significant value for stakeholders,” said Michael Dell in a recent statement.

Is Dell stock a buy or sell?

Dell Technologies has received a consensus rating of Buy. The company’s average rating score is 2.81, and is based on 13 buy ratings, 3 hold ratings, and no sell ratings.

What did Dell get from the VMware deal?

As part of the deal, VMWare will distribute a special cash dividend of between $11.5 billion to $12 billion to all VMware shareholders. From that dividend, Dell will receive approximately $9.3 billion to $9.7 billion, which it will use to pay down debt and improve its credit profile.

Who are the owners of the company VMware?

Currently, Dell owns 82 percent of VMware. Of that portion, 50 percent is held by owners of the tracking stock DVMT. The other 32 percent is held by founder Michael Dell and private equity firm Silver Lake, the owners of Dell’s DHI.

Is the Dell stake in VMware tax free?

Last year, the Wall Street Journal reported that Dell was actively considering its options for the strategic stake, including a tax-free spinoff of VMware shares. Those options also included buying VMware outright or selling its 81% stake, which would have incurred a significant tax burden.

How much would it cost to buy VMware?

Buying VMware would be an expensive effort, however. It’s worth around $67 billion today. Presuming a large premium would be needed to take this particular technology chess piece off the competitive board, it could cost $100 billion or more to snag VMware from the public markets.