This is a pure rumour, sourced from random tweets. But it comes from Miguel de Icaza, founder of Gnome and Mono, so it has a certain investment of radiance.
His first tweet:
"VMware is creating a new Linux distro, according to the recruiting spam they are sending on Linked In."
and a little later:
"Leaky VMware-istas confirm that VMware is creating a Linux distro. Investigative Journalist De Icaza signing off."
Nice work, chap. In subsequent discussions with other hacks, we agreed that it had a lot of sense behind it, although the thought of getting Linux support from VMware did rather unsettle some correspondents. The prevailing opinion, though, was "If they don't do that, where do they go?" - which has a certain logic to it.
More on this as it happens...