VMware to Buyback $1.2 Billion in Shares
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VMware (VMW) plans to buy back $1.2 billion in stock to ease the minds of EMC shareholders hesitant about the impending Dell acquisition, according to an announcement made on Tuesday.
If finalized, the move will ultimately be beneficial to current EMC shareholders because a reduction of outstanding shares is likely to increase their sale value, according to MarketWatch.
Despite some investors’ concerns that VMware is focusing too heavily on the upcoming acquisition, VMware reported minor gains on shares for its most recent quarter.
Yearly revenues are expected to land between 6.785 billion and $6.935 billion.
The buyback also means that current and prospective VMware channel partners have less to worry about in regard to the company’s focus on virtualization software. While it is much to early to say for certain, the Dell acquisition could also benefit partners by giving them access to a swath of Dell-branded solutions, thus increasing their available product and services portfolios.
Original article appeared here: VMware to Buyback $1.2 Billion in Shares