Michael Dell, chairman and CEO of Dell Technologies (NYSE: DELL), and private equity partner Silver Lake Partners will own approximately 52 percent of VMware (NYSE: VMW) once the latter’s spinoff is completed, CRN reported Monday.
In mid-April, Dell Technologies announced plans to spin off its 81 percent ownership of VMware as part of efforts to expand into hybrid cloud, 5G, edge and other growth areas and simplify capital structures. The spinoff is expected to close in the fourth quarter of 2021 through a tax-free transaction.
CRN cited sources that say Michael Dell will hold a 41 percent stake in VMware and Silver Lake will own approximately 11 percent of VMware upon the transaction’s completion.
Michael Dell and Silver Lake own 52 percent and 14 percent, respectively, of Dell Technologies, which has a market capitalization of approximately $75 billion.