EMC to Keep 90% Stake in VMware for 2 Years

In February, EMC announced plans to sell off or IPO a 10 percent stake in its acquired virtualization giant - VMware. The IPO is expected to bring in a cool $100 million, which is nothing to sneeze at since the acquisition only cost the company $625 million back in January of 2004.

According to Reuters, EMC's CFO, David Goulden, said the company doesn't plan to reduce its stake in VMware for at least two years after the initial public offering. Goulden told Reuters, "We're obviously going to assess the situation down the road based on what's happening."

He said the company aimed to keep its 90 percent stake after the IPO for some time, adding, "I'm looking at least a couple of years time horizon."

If you were planning to try and acquire more than 10 percent of the company... I guess you'll have to wait a while. :)

Posted by David Marshall on May 21, 2007 05:42 PM