Broadcom planning to buy VMware for over $50 billion

May 23, 2022, 11:10 PM UTC
1 min read
Broadcom planning to buy VMware for over $50 billion

Broadcom is reportedly planning to acquire cloud software firm VMware in a transaction valued at more than $50 billion, as the US chipmaker continues its efforts to transform its technological business.

According to Reuters, an acquisition is not expected to happen soon, but if it does, it will add to Broadcom‘s recent acquisitions of enterprise software suppliers AppNeta, Symantec‘s security division, and CA Technologies.

VMware‘s market value was $40.3 billion at the close of trade on May 20, according to the news agency. Dell Technologies turn out the cloud computing specialist in November 2021.

According to the Financial Times, Dell founder Michael Dell owns roughly 36% of VMware and serves as its chairman, although other accounts put his interest at around 40%.

In 2018, former US President Donald Trump vetoed Broadcom‘s proposal to acquire Qualcomm, citing national security concerns.

Since then, Broadcom president and CEO Hock Tan have been on the lookout for software deals, according to the Financial Times. According to Bloomberg, Tan told analysts in March that Broadcom may make a “major” purchase.

According to the news agency, Wells Fargo analysts stated that a VMware acquisition would be consistent with Broadcom‘s focus on “deepening enterprise infrastructure software strategy.”

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