Dell Technologies to consider a $50 billion spinoff with VMware
Dell Technologies Inc. (DELL.N) said on Tuesday that it is examining options including a spinoff for its roughly $50 billion stakes in VMware Inc. (VMW.N) as the PC maker seeks to boost the value of its shares.
Dell shares rose by 18% to $57.80 after rising by 1.5% in regular trading. VMware shares, which were changed during the day’s session, increased by 8% to $161.50.
According to Dell Technologies, its transaction with the cloud software company VMware could also help reduce Dell’s $48 billion debt load.
“Customers need essential technology now more than ever to put business continuity, remote working and learning plans into practice,” Dell’s Vice-chairman and Chief Operating Officer Jeff Clarke said in an interview.
Dell has recently organized working groups to explore various possibilities for the VMware stake. The company plans to set the deal with VMware before the year ends.