Dell CEO Michael Dell delivers a keynote address during the 2013 Oracle Open World conference on September 25, 2013 in San Francisco, California.
Justin Sullivan | fake pictures
Shares of computer maker Dell and enterprise software company VMware are on the rise as Dell considers what to do with its position in VMware.
Dell rose as much as 21% in extended trade on Tuesday after the Wall Street Journal reported that the company sought to buy the minority stake in VMware that it does not already own or sell its share of VMware.
VMware shares rose more than 11% after the report.
The two companies did not immediately respond to requests for comment on the report.
Dell shares have fallen approximately 5% since the start of the year, while VMware has fallen less than 2% as VMware seeks to grow from companies transitioning to public clouds. VMware formed a partnership with top cloud provider Amazon in 2016.
Dell’s revenue was roughly flat year-over-year in the quarter ended May 1, while VMware’s share of revenue, which represents approximately 13% of Dell’s total revenue, increased 12%.
Dell controlled approximately 81% of VMware’s common stock outstanding and about 97% of the combined voting power of VMware’s common stock outstanding as of May 1, according to VMware’s most recent earnings report.
Dell returned to public markets in 2018 after going private in 2018. One option before the 2018 initial public offering was that VMware could buy Dell in a reverse merger, CNBC reported; that did not end up happening.
This is breaking news. Please check for updates.
CLOCK: Dell wants more cooperation between the United States and China for a “better world.” Asia-Pacific president says
.
