The US computer manufacturer Dell has announced its decision to make VMware, in which Dell owns 81% of the shares, an independent structure. VMware develops software for cloud and virtual services.
As part of the transformation into an independent company, VMware management will pay dividends totaling $ 11.5-12 billion to all its shareholders, including Dell, which will thus receive about $ 9.5 billion. Dell plans to use these funds to reduce its debt burden. “By spinning VMware into a stand-alone company, we expect to see new growth opportunities for both Dell and VMware,” said Dell Founder and CEO Michael Dell. “And the companies will continue to work closely with each other.”
California-based VMware was founded in 1998 by University of Berkeley alumni Diana Green and Mendel Rosenblum. In 2004, VMware was bought for $ 625 million by the American component manufacturer EMC, which, in turn, was bought by Dell in 2015 for $ 67 billion. This deal significantly increased Dell's debt burden. In addition, over the past two years, its investors have expressed dissatisfaction with the weak performance of the shares, which was one of the reasons that prompted Michael Dell to begin restructuring the company.
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