Dell shares spike following reports of sale of $50bn stake in VMware
Dell Technologies is considering its strategy towards the jewel in its crown; virtualisation leader VMware
Dell Technologies shares jumped 18 per cent in after-hours trading on Tuesday, following reports in the Wall Street Journal the vendor is considering selling off its majority 81 per cent stake in VMware.
VMware shares also spiked nine per cent.
Sources in the WSJ have suggested that both companies are in the early stages of discussions and that a decision before 2021 is "unlikely".
Reportedly also on the negotiating table is whether Dell should go the whole hog and buy up VMware in its entirety.
The virtualisation services firm is currently worth almost twice as much as Dell Technologies itself.
The vendor giant's market cap is currently $36.31bn, while VMware's is $62.53bn.
Dell's stake in VMware has been valued at around $50bn.
The company is still weighed down by debts in the region of $48bn it incurred from its 2016 purchase of storage king EMC Corp.
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