Wednesday 21 October 2015

VMware and EMC shock everyone by launching a new company while Dell tries to buy them





VMware has made its third quarter results on Tuesday and fell on an announcement that surprised everyone.
VMware and its parent company, EMC, the launch of a new spin-out company called Virtustream, where both VMware and EMC have a share of 50/50.

This is a cloud computing company that will compete with Amazon, Google and Microsoft, with the hardware and software at its core EMC VMware, including cloud technical management of a company called Virtustream that EMC bought this last spring for $ 1, 2 billion.
The spin-out at this stage is very rare because the Dell last week announced it was acquiring EMC for a record $ 67 billion, including the majority stake in EMC VMware.

Although the acquisition of Dell-EMC will not be complete for months, all this new company will end up under the aegis of Dell, once it is completed. So to announce a spin-off at this point is striking.
Perhaps the real point is to demonstrate to shareholders that VMware Dell will actually nonintervention with VMware. Dell even wrote a blog post Monday pledging not spoil VMware.

Meanwhile, VMware shares fell sharply after Dell announced the acquisition.
That's a problem because the agreement to buy EMC Dell includes "monitoring" of shares to shareholders to represent their property EMC VMware. Dell uses the value of the shares of VMware to help boost its bid for EMC of about $ 24 per share of about $ 30 per share.

Investors are still not happy with VMware. The stock fell 5% in after-hours trading.
As expected, VMware also reported a strong third quarter, surpassing the revenue gains and thus fulfilling their forecasts for growth. VMware announced previously expected results last week when Dell and EMC have announced the proposed acquisition.

He announced a third quarter profit of $ 1.02 per share on revenue of $ 1.67 billion - an increase of almost 10% year on year.

Its orientation was to a great 2016 revenue growth of two low digits, with Wall Street for 10.9%. It is the fourth quarter EPS guidance was $ 1.23 to $ 1.27, when analysts expected $ 1.23.

No comments:

Post a Comment

Note: only a member of this blog may post a comment.