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VMware is officially spinning off from Dell

(Photo by Yichuan Cao/NurPhoto via Getty Images)

VMware shareholders will receive up to a $12 billion cash dividend, per Wednesday's release, while Dell stockholders will get a pro-rated amount of the 81% stake the company has in VMWare. Michael Dell, along with Silver Lake Partners, will have "direct interests in VMware," per the release. Dell announced it was considering this move nearly a year ago, but hadn't offered much in the way of details or timing until now.

Despite spinning off, VMware said it reached an agreement with Dell "that preserves and enhances their strategic partnership to deliver joint customer value."

VMware is still on the hunt for a new CEO after Pat Gelsinger left to lead Intel.

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