Dell CEO Michael Dell delivers a keynote address during the 2013 Oracle Open World conference on September 25, 2013 in San Francisco, California.
Justin Sullivan | Getty Images
Shares of computer maker Dell and enterprise software company VMware are up as Dell considers what to do with its position in VMware.
Dell rose as much as 21% in extended trading on Tuesday after the Wall Street Journal reported that the company looked into buying out the minority stake of VMware that it doesn’t already own or selling its share of VMware.
VMware shares were up more than 11% following the report.
The two companies did not immediately respond to requests for comment on the report.
Dell shares are down about 5% since the beginning of the year, while VMware is down less than 2%, as VMware seeks to grow from companies transitioning to public clouds. VMware formed a partnership with top cloud provider Amazon in 2016.
Dell’s revenue was roughly flat year over year in the quarter that ended on May 1, while VMware’s portion of the revenue, representing about 13% of Dell’s total revenue, was up 12%.
Dell controlled about 81% of VMware’s outstanding common stock and about 97% of the combined voting power of VMware’s outstanding common stock as of May 1, according to VMware’s most recent earnings report.
Dell returned to public markets in 2018 after going private in 2018. One option before the 2018 initial public offering was that VMware could buy Dell in a reverse merger, CNBC reported; that did not end up happening.
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