Original URL: http://www.theregister.co.uk/2007/05/17/emc_will_keep_vmware_shares/
EMC to hang fire on VMWare stock sales for two years (or more)
Will retain its Pac-Man shaped percentage after IPO
Posted in Servers, 17th May 2007 23:22 GMT
Free whitepaper – Selecting an Industry-Standard Metric for Data Center Efficiency
EMC is to retain a 90 per cent stake in VMWare for at least two years after the subsidiary's IPO in late 2007.
EMC CEO David Goulden today told (http://www.reuters.com/article/TechnologyMediaTelecoms07/idUSN1622157420070517) the Reuters Global Technology, Media and Telecoms Summit in New York the company will assess the situation later, but is "looking at at least a couple of years time horizon."
Plans to offer 10 per cent of VMWare through the IPO were announced (http://www.theregister.co.uk/2007/02/07/emc_vmware_ipo/) in February to provide a boost for EMC shareholders concerned over VMware's sales skyrocketing while EMC shares stayed flat.
An April filing (http://www.theregister.co.uk/2007/04/26/vmware_ipo_filing/) with the US Securities and Exchange Commission revealed EMC plans to get $100m out of the sale.
EMC bought virtual machine software maker VMWare in 2004 for $635m cash. (http://www.theregister.co.uk/2003/12/15/emc_eyes_the_server/) ®