VMware moves from the joint venture with EMC Virtustream
VMware has announced that it does not intend to participate in a joint venture called Virtustream with its parent company EMC, as previously discussed. This decision, which has led to a drop in the company’s stock virtualization, could further complicate the situation in which EMC is following the acquisition by Dell.
A few days after the multimillion-dollar deal with Dell, EMC and VMware they announced made public their intentions to share assets Virtustream 50% each, which, according to experts, has led to a fall in the value of shares companies, as shareholders did not agree with this movement, which did not like Dell and its investor Silver Lake.
EMC acquired Virtustream by mid dólaresa 1,200 million this year, when it was also announced that the actions of this would be shared equally with VMware as a joint venture. In November, already it made public that following the purchase by Dell, EMC could decide to keep the majority of shares.
Now, as published by eWEEK during a brief presentation to the Commission on Securities and Exchange (SEC) of the United States, on Monday officials VMware said they no longer will participate in creating a business cloud services called Virtustream.
The market estimates that this unit could record losses of $ 300 million over 2016.