Thread regarding VMware layoffs

VMW Special cash dividend

I'm surprised noone mentioned this cash dividend VMware paid about a year ago now as one of the possible issue we faced. The cash dividend was actually a huge sum like 11Billions mostly gone to DELL shareholders.

As the dividend wasn't really covered by real annual earnings the natural drop in price that happens when a company pays a dividend was never recovered.

The idea I have is that VMware was really an incredible profitable companies but very bad choices like: dividends, bad acquisitions, bad vision brought us to this conclusion.

At the moment there are a lot of companies with very few earnings which market capitalization is like 120Billions.

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| 2181 views | | 5 replies (last August 31, 2022) | Reply
Post ID: @OP+1iqNa2cp

5 replies (most recent on top)

OP has zero understanding of why that cash dividend happened. did you really want to be part of Dell?

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Post ID: @4gsk+1iqNa2cp

What is hilarious is VMware was THE virtualization company to be for sooo long and then they let themselves get bought by EMC back in the day and now are traded around like a cheap pokemon card.

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Post ID: @2gmk+1iqNa2cp

Yep

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Post ID: @1lhk+1iqNa2cp

We actually had to take a loan for a majority of that - that's what the 9B of debt is on the balance sheet. Nice. huh. We made no significant acquisitions since acquired by Dell. EMC actually lent money to VMware to buy things like Nicira and/or whatever vROPS came from. (integrion ??)

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Post ID: @ncn+1iqNa2cp

I mean what you are referring too was so Michael could spin us off to be independent while keeping a majority stake aka double dipping. It wasn't a VMware chose to do it but we were forced due to majority ownership.

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Post ID: @dfp+1iqNa2cp

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