Sources Contact Advanced Search Tutorials

An Interest In:

Web News this Week

Search Archive

Some of Our Sources

View All Sources

Help Webnuz

Referal links:

April 15, 2021 04:06 pm

Dell Announces Long-Awaited Spinoff of VMware

Dell has announced the long-expected spinoff of VMware, the computing virtualization company it has majority-owned since it bought then-owner EMC Corp. in 2016. From a report: The computing giant said it will spin off its 81% equity ownership in VMware, creating two standalone companies when the move is completed in the fourth quarter of this year. That timing depends on conditions such as a favorable Internal Revenue Service opinion that the transaction qualifies for tax-free status for Dell shareholders. The idea is to simplify the companies' capital structures, since arguably investors have valued both companies' stocks lower than they might have because of the uncertainties related to the complex capital structures. Dell's shares rose about 9% in after-hours trading, while VMwareâ(TM)s shares rose about 1.6% in late trading. Under the spinoff, which Dell had signaled last year, VMware will distribute a cash dividend of about $11.5 billion to $12 billion to shareholders, which of course include publicly held Dell itself. Chairman and Chief Executive Michael Dell, along with financial partner Silver Lake Partners, own 60% of Dell shares. Dell will get $9.3 billion to $9.7 billion of that dividend, which the company said will help it get more investment-grade ratings and enable it to pay down debt it has gradually been reducing since buying EMC.

Slashdot

Slashdot was originally created in September of 1997 by Rob "CmdrTaco" Malda. Today it is owned by Geeknet, Inc..

More About this Source Visit Slashdot