Dell said that it was it would spin off its 81% stake in VMWare, and the deal would create two standalone companies with Dell receiving a special dividend between $9.3 and $9.7 billion.
“Based on Dell Technologies' current 80.6% ownership in VMware, Dell Technologies would receive approximately $9.3 billion to $9.7 billion and intends to use the net proceeds to pay down debt, positioning the company well for Investment Grade ratings,” Dell said in a statement announcing the transaction.
"By spinning off VMware, we expect to drive additional growth opportunities for Dell Technologies as well as VMware, and unlock significant value for stakeholders," said Michael Dell, CEO of Dell Technologies, in a statement. "Both companies will remain important partners, providing Dell Technologies with a differentiated advantage in how we bring solutions to customers. At the same time, Dell Technologies will continue to modernize its core infrastructure and PC businesses and embrace new opportunities through an open ecosystem to grow in hybrid and private cloud, edge and telecom," he added.
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