Dell looks into VMware spinoff
The company is also considering buying the shares in VMware it does not already own
Stocks impacted: Dell Technologies Inc (DELL), VMware (VMW)
Dell Technologies is considering spinning off its majority stake in VMware, probably in an effort to increase its market value. VMware offers a range of software and cloud computing services, competing against rivals such as Amazon and Microsoft for business clients. The data center giant owns a majority stake in VMware and could fetch an estimated $50 billion in case of a deal. Now, the two companies are working with advisers. Dell is also considering buying the shares in VMware it does not already own. Following the news, Dell stocks jumped 18% in after-hours trade while VMware were up 9%.
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