EMC To Sell Some VMware Shares in IPO

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EMC Corporation (EMC) will sell approximately 10% of VMware through an IPO of newly issued VMware stock. EMC will hang onto the remaining 90% of VMware shares, and “has no intention of spinning out or otherwise divesting this ownership interest.”

VMware is the global leader in software for virtualization, the hot trend in managing complex data center infrastructures. The IPO will allow EMC to benefit from the boom in virtualization, but still retain tight control of VMware. The company also intends to use VMware stock options as as hook to attract technical talent.

“VMware is one of the fastest-growing businesses in the history of the software industry,” said Joe Tucci, EMC Chairman, President and Chief Executive Officer. “We expect the IPO to unlock more of VMware’s value for EMC shareholders while also strengthening its ability to retain and attract the software industry’s top talent.”


VMware had record sales in 2006, growing revenues 83% during the year to $709 million. It finished the fourth quarter of 2006 with year-over-year revenue growth of 101%, delivering accelerating year-over-year growth for the fifth consecutive quarter.

“We expect that the IPO will help us execute on our vision of an industry standard virtual infrastructure,” said Diane Greene, VMware President. “It should enable us to accelerate our ability to find and attract great people, continue to invest in great product development, and grow an even stronger partner ecosystem.”

About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.