[Digital Today Reporter Chigyu Hwang] Enterprise computing platform company Dell Technologies separates its subsidiary VMware. To this end, Dell announced on the 14th (local time) that it has decided to drop 81% of its stake in VMware.
“By separating VMware, we will unlock significant value for our shareholders and lead to additional growth opportunities,” said Michael Dell, chairman of Dell Technologies, who also chairs the VMware board of directors. He also emphasized that even if separated, the two companies will remain important partners in providing differentiated solutions to customers.
With the separation, VMware plans to provide cash dividends ranging from $11.5 billion to $12 billion to all shareholders. According to Business Insider, Dell is estimated to receive $9.3 billion to $9.7 billion through the VMware separation.
Dell Technologies has been reviewing the separation of VMware since last year as part of raising the value of its stock.
Author/ Translator: Jamie Kim
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