John Chambers to give keynote at VMworld 2007 after buying $150 million of VMware stock

VMworld 2007 offers three full days of conference activities, including more than 230 breakout sessions around 8 tracks and hands-on labs led by VMware technical and business professionals.

Furthermore, Cisco Chairman and CEO - John Chambers, will be the keynote speaker on Wednesday, September 12th, 2007.

No doubt Chambers will touch on the subject of Cisco's announcement today, that it purchased $150 million of VMware Class A common shares as part of the upcoming Initial Public Offering - IPO of VMware. EMC Corporation currently owns more than 99.9% of VMware's outstanding common stock.

Related story:

Network World - Cisco to acquire equity stake in VMware

The stock purchase was orchestrated by Ned Hooper - senior vice president corporate development at Cisco.

VMware is expected to appoint a Cisco executive to its board of directors in order to represent Cisco's 1.6% ownership of EMC's total outstanding common stock.

Following the IPO, EMC will own 26,500,000 shares of Class A common stock and all 300,000,000 shares of Class B common stock, representing approximately 87% of VMware's total outstanding shares of common stock.

View Cisco stock purchase agreement with VMware

However, VMware Class B common stock will be entitled to 10 votes per share and the holders of Class A common stock will be entitled to only one vote per share, giving EMC approximately 98% of the combined voting power of VMware's outstanding common stock upon completion of the Initial Public Offering.

In the quarter ending March 31st 2007, VMware total revenues grew 100% to $258.6 million from $129 million in 2006.

2007 net income in the same quarter grew 100% to $40 million from $20 million in 2006.

What do you think of Cisco's investment in VMware?

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