Tuesday, July 08, 2008

EMC replaces the chief and co-founder of VMware, silencing talk of a spinoff - International Herald Tribune

"For the last month, several reports from Wall Street analysts have debated whether EMC, the big computer storage company, would sell off its 85 percent stake in its crown jewel, VMware, a fast-growing software star.
EMC seems to have given its answer with a dramatic gesture on Tuesday. It fired VMware's chief executive and co-founder, Diane Greene. She is being replaced by Paul Maritz, a former senior executive at Microsoft who joined EMC this year when it bought his Web start-up.
Greene was fired after she refused to resign or take another position at VMware, according to a VMware manager who asked not to be named because he was not authorized to speak publicly.
The point of conflict, the person said, was that Greene had been pushing hard for VMware to be spun off early next year. After five years of ownership, a subsidiary can be sold off in an essentially tax-free transaction. EMC bought VMware for $635 million in cash in December 2003."

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