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VMware is more valuable than Dell, and their innovation track record is better than Dell’s over the last few years,” he said. “Companies do things like this all the time to gauge value, together and apart, and my hunch is this is one of those pieces of research,” Moorhead told TechCrunch.īut as Holger Mueller, an analyst with Constellation Research, points out, it’s an idea that could make sense.
#Emc stock splits trial#
Patrick Moorhead, founder and principal analyst at Moor Insights & Strategy, thinks this might just be about floating a trial balloon. Still, Dell owns 81% of that stock, so it could sell a substantial stake and still own a majority of the company, or it could sell it all, or incorporate into the Dell family, or of course it could do nothing at all. It’s important to understand that even though VMware is part of the Dell family, it runs as a separate company, with its own stock and operations, just as it did when it was part of EMC. The news sent the stock of both companies soaring. The Wall Street Journal reported yesterday that Dell is considering selling part of its stake in VMware. Since then Dell has been working on ways to mitigate that debt by selling off various pieces of the corporate empire and going public again, but one of its most valuable assets remains VMware, a company that came over as part of the huge EMC deal. When Dell bought EMC in 2016 for $67 billion it was one of the biggest acquisitions in tech history, and it brought with it a boatload of debt.
