The hotly anticipated VMware (VMW) IPO opened today at $52, a jump of nearly 80% from its $29 offer price. Oddly, EMC (EMC) was trading down more than 2%, putting shares once again below $19.
This is a bit of deja vu for many who expected a strong opening for VMware to directly benefit EMC's share price since they retain an 87% stake in the company.
VMware's opening price values the company at roughly $20 billion, making EMC's stake worth roughly $17 billion. EMC's entire maket cap is actually $39 billion. Does that mean EMC's operations without VMware are worth only $22 billion? That would make for some odd numbers. VMware was responsible for less than 10% of EMC's revenues in the most recent quarter, but apparently accounts for 44% of the market cap?
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