Broadcom Said to Be in Talks to Acquire VMware

The VMware acquisition would further diversify Broadcom’s business away from semiconductors and into enterprise software.

By Reuters | Updated: 23 May 2022 14:42 IST

Broadcom Said to Be in Talks to Acquire VMware

Photo Credit: Reuters

The market capitalisation of VMware was $40.3 billion (roughly Rs. 3,12,598 crore)

Highlights

Michael Dell is VMware’s biggest investor with a 40 percent stake
Broadcom purchased CA Technologies for $18.9 billion
It acquired Symantec's security division for $10.7 billion

Chipmaker Broadcom is in talks to acquire cloud service provider VMware, people familiar with the matter told Reuters.

Negotiations between Broadcom and VMware are ongoing and a deal is not imminent, the sources said. The deal terms under discussion could not be learned.

The acquisition would further diversify Broadcom's business away from semiconductors and into enterprise software, following its $18.9 billion (roughly Rs. 1,46,591 crore) acquisition of CA Technologies and its $10.7 billion (roughly Rs. 82,997 crore) purchase of Symantec's security division in the last four years.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

Bloomberg News first reported the deal late on Sunday. Broadcom and VMware did not immediately respond to Reuters' requests for comment. As of Friday's market close, the market capitalisation of VMware was $40.3 billion (roughly Rs. 3,12,598 crore).

Michael Dell is VMware's biggest investor with a 40 percent stake as a result of Dell Technologies having spun out VMWare to its shareholders last year, according to Refinitiv data.

Private equity firm Silver Lake, which has previously invested in Broadcom, is VMware's second largest shareholder with a 10 percent stake, Refinitiv data shows.

Apple, Broadcom Win New Trial in $1.1 Billion Caltech Patent Case

© Thomson Reuters 2022

Should you pick Vivo over Galaxy S22 and OnePlus 10 Pro? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.