Intel Invests $218 Million As VMware Prepares For IPO

Intel Capital and VMware have announced that the processor manufacturer will invest $218.5 million in the software virtualization company. With its new investment in VMware, Intel extends its longtime relationship with the EMC unit. In an announcement, Intel and VMware said: "VMware's base virtualization platform virtualizes the Intel architecture. Intel microprocessors comprise the majority of the systems on which VMware's virtualization products are deployed." As well, the lead underwriters, Citigroup Global Markets, JP Morgan Securities, and Lehman Brothers, are preparing to launch the much-anticipated IPO for EMC's VMware subsidiary. At the completion of the IPO, Intel expects to own about 2.5% of VMware's total outstanding common stock, and Intel expects to appoint an executive to VMware's board of directors.

News source: InformationWeek

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12 Comments

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Not everyone looks at shareholders as evil. It's also possible the company will make greater strides to improve the product and listen to consumers complaints/ideas. Now they will have shareholders to answer to and Intel just sweetens the pot.

I see this as the glass half full....

Hm.. worried about Intel getting their foot in the door that much at VMware We were sizing up to use VMware on AMD kit seeing as it performs really rather well on AMD Opterons..

Chicane-UK said,
Hm.. worried about Intel getting their foot in the door that much at VMware We were sizing up to use VMware on AMD kit seeing as it performs really rather well on AMD Opterons..

The board will probably make a huge scene if Intel wants to exclude AMD's virtualization technology from VMware.
I wonder which is the best.
If Intel get their will through, then the costumers will make a huge scene.
I don't think that VMware only will favor Intel's processors, since that will give away marketshare to other virtualization products.

_dandy_ said,
You think VMware isn't in it for profit?

who said vmware wasn't for profit? it just gets a LOT worse when you IPO

IPO? oh geez... I sure hope the "investors" don't wreak havoc on this company and destroy vmware for profits....