Menu
Rumours swirl of Broadcom talks to buy VMware

Rumours swirl of Broadcom talks to buy VMware

According to sources, discussions are ongoing.

Credit: Broadcom

Chip maker Broadcom is in talks to acquire VMware following the latter's divestment from Dell Technologies, according to news sources. 

VMware officially became a standalone company in November last year from its parent firm Dell, thereby untying the knot that has held them together since 2016.

However, with both Reuters and Bloomberg cited unnamed "people familiar with the matter", whispers now abound over Broadcom's most recent attempt to diversify itself from its chip-maker heritage.

However, as noted in the reports, “discussions are ongoing and there’s no guarantee it will lead to a deal.”

As it stands, VMware has a market valuation of about US$40 billion. What’s interesting to note is that private equity firm Silver Lake has previously invested in Broadcom and is a current VMware shareholder. 

Broadcom has been attempting to diversify from its chip-maker specialty for some time by buying Symantec’s enterprise security assets in a US$10.7 billion deal in 2019.

Just months later, Accenture bought Symantec’s cyber security services business from Broadcom, but not long before the chip maker axed up to seven per cent of the security vendor's global workforce during its consolidation process of its enterprise security assets. 

In 2018 Broadcom’s surprise bid to buy software company CA for US$18.9 billion wiped off the same amount from its market value as investors and analysts struggled to find a clear reason for the deal at the time. 

At the time the move was widely seen as a way for both companies to work with new partners and expand their respective technologies while keeping close ties to each other.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags VMwarebroadcom

Events

ARN Innovation Awards 2022

Innovation Awards is the market-leading awards program for celebrating ecosystem innovation and excellence across the technology sector in Australia.

EDGE 2022

EDGE is the leading technology conference for business leaders in Australia and New Zealand, built on the foundations of collaboration, education and advancement.

Brand Post

Channel Roadmap

The Channel Roadmap is a bespoke content hub housing strategic priorities from technology vendors for 2022 and beyond, partners can find the guidance on the key technologies and markets to pursue, to help build a blueprint for future success.

Show Comments