announced that the company has entered into a Stock Purchase Agreement with
Dell Technologies, Inc., under which VMware agreed to purchase $500
million worth of VMware Class A Common Stock currently held by Dell's
subsidiary, EMC Corporation. Separately, Dell Technologies plans to use
the $500 million proceeds to repurchase the Dell tracking stock for
$500 million stock purchase is expected to be completed during VMware's
first fiscal quarter ending May 5, 2017. The impact of the $500 million
Stock Purchase Agreement on VMware's Q4 fiscal 2016 and full year 2016
diluted share count and non-GAAP earnings per share is not expected to
be material. This $500 million stock purchase is the only stock purchase
plan currently authorized. As VMware disclosed on its Q3 2016 earnings
call, a previously authorized $1.2 billion stock buyback was completed
in early Q4 2016.
VMware intends to comment on additional plans for
returns of capital to stockholders, if any, during VMware's Q4 2016
earnings conference call in January 2017.