Dell mulls options for its $50B stake in VMware – report
Dell Technologies is exploring options for its $50 billion stake in enterprise software company VMware Inc., the Wall Street Journal reported on Tuesday citing people familiar with the matter.
Dell is considering buying out the minority stake in VMware that it doesn’t already own, or selling its share of VMware, according to the report. However, it is also possible that the company chooses to do nothing as the review is in the early phase. The reason behind the review is to address a gap between Dell’s market value of roughly $36 billion and the value of its 81% stake in VMware.
Dell’s shares soared nearly 19% to $58.19 in after-hours trading, while VMware stocks jumped by 10.23% to $164.50.
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