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Dell Confirms It’s Considering Spinning Off VMware. Here’s How It Would Work.

(DELL) Technologies late Wednesday confirmed recent reports that it is considering spinning off its 81% stake in (VMW) shares to current Dell holders, in a deal that also could include VMware paying a substantial special dividend to Dell and other holders. Dell (ticker: DELL) said in a filing with the SEC that a VMware (VMW) spinoff “could benefit both Dell Technologies’ and VMware’s stockholders by simplifying capital structures and enhancing strategic flexibility, while still maintaining a mutually beneficial strategic and commercial partnership.” Dell said it could also decide to maintain the status quo. Read More...

(DELL) Technologies late Wednesday confirmed recent reports that it is considering spinning off its 81% stake in (VMW) shares to current Dell holders, in a deal that also could include VMware paying a substantial special dividend to Dell and other holders. Dell (ticker: DELL) said in a filing with the SEC that a VMware (VMW) spinoff “could benefit both Dell Technologies’ and VMware’s stockholders by simplifying capital structures and enhancing strategic flexibility, while still maintaining a mutually beneficial strategic and commercial partnership.” Dell said it could also decide to maintain the status quo.

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