Tuesday, July 22, 2014

EMC Investor to Urge Storage Vendor to Spin Off VMware [eWeek]

Curious that some of the press on this topic refers to VMware as a potential future EMC spin-off and to Pivotal (a joint venture between EMC and VMware) as past-tense spun-out

"According to a report in The Wall Street Journal, Elliott Management has acquired more than $1 billion worth of EMC stock—worth about 2 percent of the company—and wants EMC to sell off its 80 percent stake in VMware, which it acquired in 2004 and has since been running as an independent subsidiary.
Elliott officials have contacted EMC Chairman and CEO Joe Tucci over the past week and plan to meet with him to voice their concerns that the EMC-VMware relationship is not helping either company reach its potential, according to the news report. The present arrangement has hindered EMC's stock, and spinning off VMware would bolster the stock, the investors will argue."
EMC Investor to Urge Storage Vendor to Spin Off VMware

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