Tuesday, July 10, 2007

Intel Buys Stake in EMC’s VMware - New York Times

Let's see -- EMC pays $625M to acquire VMWare (deal completed in early 2004), and now Intel is paying ~$219M for a small minority share; not bad EMC ROI... 

No. 1 chipmaker Intel will pay $23 a share for 9.5 million Class A common shares in VMware, giving it 2.5 percent of all outstanding common stock

VMware also said in a regulatory filing shedding new information on plans for its upcoming IPO that it expects to sell up to 37.95 million shares to the public for an estimated price of between $23 and $25 per share.

After the sale to Intel, the chipmaker will control less than 1 percent of voting shares because the stock is divided into two classes in which Class B shares have greater voting power, the companies said.

The WSJ this morning included an article noting "An Intel executive will become a director of VMware, a Palo Alto, Calif., company that expects to raise $741.4 million from the offering."

Intel Buys Stake in EMC’s VMware - New York Times

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