The sale is expected to be worth almost $50 billion and will be dealt with by September next year. Dell confirmed the news after submitting a filing with the US Securities and Exchange Commission (SEC).
The potential move, which is in its very early stages and may not happen. EMC acquired the company 17 years ago in a $625 million deal and Dell, in turn, gained the asset after merging with EMC in 2016.
Dell CEO Michael Dell said that the two companies have innovated for their customers together for nearly 20 years and created substantial growth and value themselves.
“Regardless of the options we are exploring to create additional value, we are accelerating our strategy – which remains unchanged. We are focused on winning in the consolidating markets where we operate and innovating across the Dell Technologies portfolio to create integrated solutions that turn data into insights and action”, Dell said,
So far the rumours have been in the other direction with Dell considering a full merger (also known as a ‘reverse spinoff’) with VMware.
Spinning off VMWare would mean the company would become independent either through the sale or distribution of new shares, and it’s expected to be worth more than if it were to remain part of the larger Dell brand.
The company would retain its own management structure and be established as an independent company, although may continue to rely on financial and technological support from Dell.