Dell stock spikes over 7% after it says it's considering spinning off VMware
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Dell is considering splitting from VMware, just five years after the tech giant acquired the
The Texas tech giant announced Wednesday that it is exploring "a potential spin-off of its 81% ownership" of VMware which it bought in 2015 through a merger with EMC. VMware had been owned by the data storage company.
Dell's acquisition of EMC and VMware transformed it into a bigger tech player, but the transaction saddled the company with a sizeable debt.Dell said it is also considering other options, including maintaining its VMware ownership.
"Regardless of the options we are exploring to create additional value, we are accelerating our strategy, which remains unchanged," Dell CEO Michael Dell said in a statement. "We are focused on winning in the consolidating markets where we operate."Dell shares rallied more than 7% in after-hours trading.
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