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."
Joe Williams is a senior reporter at Protocol covering enterprise software, including industry giants like Salesforce, Microsoft, IBM and Oracle. He previously covered emerging technology for Business Insider. Joe can be reached at JWilliams@Protocol.com. To share information confidentially, he can also be contacted on a non-work device via Signal (+1-309-265-6120) or JPW53189@protonmail.com.