Chipmaker Giant Broadcom Inc. in Acquisition Talks for Cloud Enterprise VMware

    As per people familiar with the matter, Broadcom Inc. is talking with VMware Inc. for an acquisition. The merger of the cloud computing company with the chipmaker would be a blockbuster deal, catapulting them into a highly specialized software business. 

    More about the possible acquisition

    The ongoing discussion does not guarantee the deal may finalize as per people who did not wish to be denied as the matter is not public. The current market value of VMware is $40 billion, and the deal at a premium would mean a higher purchase price. 

    The transaction can extend the acquisition spree of Broadcom’s CEO, Hock Tan, who has built one of the most diversified and large companies in the chip industry. Broadcom has bought CA Technologies in 2018 and the enterprise security business of Symantec Corp in 2019, underlying the key focus on software. 

    Comments were not available from the representatives of VMware and Broadcom. 

    Broadcom produces a wide range of electronic items, with the products finding use in everything from industrial equipment to iPhone. However, data centers have become a source of growth, and expanding on software allows companies to target the market better. 

    Last year Broadcom was in talks with SAS Institute Inc., a software company valued between $15 billion and $20 billion and closely held. The deal, however, did not materialize.

    Tan was thwarted in his attempt for the biggest takeover deal when he tried to bid for rival Qualcomm Inc. in 2018 after meeting with resistance from the Trump administration. The concern then was that Broadcom was based in Singapore, but the company had shifted its headquarters to the US. It is based in San Jose, California, about 20 miles away from VMware’s Palo Alto headquarters. 

    VMware was founded in 1998 as a pioneer in Silicon Valley. It is known for inventing virtual software which consolidates workloads and applications. It struggled to keep up the growth and carve out a niche as it moved to the cloud. The company entered into a partnership with Amazon Inc., one of the biggest cloud storage service providers. 

    In 2004, VMware was acquired by EMC Corp, the storage technology giant. The company sold a part of its stake through an IPO three years later, and later the business went over to Dell Technologies Inc. when EMC was acquired in 2016. Last year VMware was spun off from Dell. 

    As per data compiled by Bloomberg, Michael Dell and PE firm silver lake remain top Investors in VMware.

    Shares of VMware and Broadcom have both declined roughly 18% this year, hurt by the broader market rout. However, they are not as hard-hit as many other tech stocks. The Semiconductor Index on Philadelphia Stock Exchange is down 27% this year. 

    VMware rose to $95.71 in New York trading Friday, up by 0.8%, makings its market valuation to $40,3 billion. Broadcom Inc. was down 1% to $543.19, having a market capitalization of $222 billion. 

    You can decide to invest in any of these three semiconductor stocks. Your chance of making a profit will certainly be higher, to say the least.


    RELATED ARTICLES

    Pookie Baba

    Is Pookie Baba Real? Internet Reacts in India

    In the short-evolving global of virtual content and meme culture, few personalities have captured the...
    When was Studio Ghibli founded

    When Was Studio Ghibli Founded: Japan’s Iconic Animation Legacy

    Studio Ghibli is a popular Japanese animation studio, known by many for its stunning movies,...
    US-Ukraine talks

    US-Ukraine Talks: Zelensky Seeks Meaningful Outcomes Amid War

    Ukrainian President Volodymyr Zelensky hopes the subsequent talks between Ukraine and the United States will...
    OTT platforms

    OTT Platforms: Reviving Local Languages, Culture, and Heritage in India

    OTT systems have revolutionized content material intake in India, presenting audiences with admission to numerous...
    mental health

    Mental Health Awareness In India: Breaking The Stigma In 2025

    One of the aspects of our overall well-being is mental health, and it should not...
    women safety in India

    Women Safety in India: Key policy changes and ongoing challenges

    For an extended period, Indian society has maintained women's safety as both domestic and international...

    MORE ARTICLES

    wellhealthorganic yurovskiy kirill

    WellHealthOrganic Yurovskiy Kirill: Your AI Health Guide is Here!

    WellHealthOrganic yurovskiy kirill is leading the charge in revolutionizing personalized healthcare. Are you tired of...
    Wheon Gaming

    Wheon Gaming: A New Frontier in Online Entertainment

    In this constantly changing digital era, Wheon Gaming has become a force to be reckoned...
    Wellhealthorganic.com protein

    Everything About Wellhealthorganic.com Protein & Its Benefits

    In today’s health-conscious international, protein has emerged as the cornerstone of fitness, well-being, and ultimate...
    5starsstocks.com Materials

    5starsstocks.com Materials: Expert-curated Stock Data

    In the world of the stock market, which is all about smart investments, knowledge is...
    Well Health Organic Best Health Care

    Well Health Organic Best Health Care Guide

    In the present age of rapid change, many people are turning to natural options for...