Cisco takes $78M haircut on VMware investment

Cisco took a $78 million haircut on its VMware stock investment after it was announced today that VMware co-founder and CEO Diane Greene had been sacked.

Perhaps most telling of the unpleasantness surrounding today's event is that Diane Greene is no longer even acknowledged as a co-founder on the VMware leadership/co-founder web page.

Representing Cisco's investment on the VMware Board of Directors is retired Cisco CFO - Dennis Powell. Of the seven directors on the VMware board who made the decision to sack Greene, only Powell and Renee James are not either EMC executives or EMC directors. James sits on the VMware board representing the investment made by Intel Corporation in VMware stock.

Cisco's 6 million VMware shares have lost $507.8 million of their value since October 31st - 2007, leaving Cisco with only a $91.1 million profit on its original $150 million VMware investment.

Do YOU believe VMware stock is still overpriced?

http://www.BradReese.Com

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