Updated · Jun 24, 2022
Broadcom in Talks to Buy Cloud Computing Company VMware
Updated · May 23, 2022
A satisfactory deal for both parties is still some way off, according to the report.
Deal Not Imminent
Semiconductor giant Broadcom is reportedly in talks to acquire cloud service provider VMware, a person familiar with the matter told Bloomberg.
According to the source, negotiations are still ongoing and both sides are not close to reaching a deal. The takeover move is one that is expected to generate a sizeable jackpot for Michael Dell, VMware’s biggest shareholder. The American businessman owns a 40% stake in the company.
US-based Broadcom develops, manufactures, and supplies semiconductor and infrastructure software products. Traditionally, it focused on buying other chipmakers. However, since a proposed mega-deal to acquire Qualcomm for $117 billion crashed in 2018, it has looked to branch into other areas.
Later that year, it bought IT management software company CA Technologies for $18 billion. In 2019, it added Symantec Corp’s cybersecurity division for $10.7 billion.
VMware has held a longstanding position as a global leader in a cloud computing market that is expected to be worth $800 billion by 2025. It provides cloud infrastructure and management services to large corporations.
However, it has seen a slump in its share price over the last few years. The current $95.71 per share price is less than half of what it traded in 2019. This has led to an increase in takeover speculation.
Both companies have declined to comment on the report. So far, no details on the deal have surfaced.
Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.
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