« AMD welcomes the end of Intel's advertising monopoly | Main | Intel gets cornered in »
VMWare's $9.4bn success
Cisco today joined Intel in buying a stake in virtualization vendor VMWare. The networking giant paid $150m for 1.6 per cent of VMWare's stock.
Intel earlier this month shelled out $218.5m for a 2.5 per cent stake in the company. The chipmaker got a better deal, paying $87.4m per percentage point relative to Cisco's $93.75m per percentage point.
The Cisco deal values VMWare at $9.4bn. That for a company that logged $703.9m in sales last year.
The real winner here is EMC, which paid $635m to acquire VMWare in 2003 at about three time its annual sales. The firm is now selling off a 10 per cent stake in the company on the stock market and directly to industry partners, while maintaining a firm hold on its strategic direction.
July 27, 2007 at 11:16 PM | Permalink
TrackBack
TrackBack URL for this entry:
http://www.typepad.com/t/trackback/24766/20381964
Listed below are links to weblogs that reference VMWare's $9.4bn success:
Spanish
