Who is vmware owned by

The transaction is not a surprise. The company has been open about its intention to shake up its broader corporate structure.

Several of Dell's largest shareholders, including private-equity firm Silver Lake and hedge fund Elliott Management whose 5. One possibility if a spinoff takes place is that VMware could pay Dell a large special dividend by taking on added debt and helping Dell reduce its heavy debt load, two of the people said. Dell could achieve investment grade status if it moves forward with the spinoff and associated dividend, two of the people said.

For VMware investors, the appeal of a breakup lies in the opportunity to finally operate entirely outside of the Dell-EMC empire, where the business has been stuck for 17 years. Given the strained relationship with China, Dell's financial picture isn't likely to improve anytime soon. While Dell has long coveted owning all of VMware, buying the remainder of the company is unlikely, four people said.

The premium required to purchase the shares would most likely require Dell to take on even more debt. And keeping VMware's stock independent is important to VMware employees, who want their equity incentives to be tied to a growth story.

Mergers and Acquisitions. Shutterstock Start slideshow. Written by Edward Gately April 15, Dell's EMC acquisition left it with considerable debt. The spinoff will create two standalone public companies. WAN optimization is the key to unleashing the performance benefits of any software-defined network deployment. Channel partners, feast your eyes on this UCaaS smorgasbord. Leave a comment Cancel reply -or- Log in with your Channel Futures account Alternatively, post a comment by completing the form below:.

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