Chipmaker Broadcom In Talks To Buy Cloud Company VMware

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According to people familiar with the matter, setting up a blockbuster tech deal that would vault the chipmaker into a highly specialized area of software.

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A deal, which could be worth more than $50bn, would transform the deal-hungry semiconductor group into a diversified tech company ranging from chips to cloud computing services.

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VMware and Broadcom declined to comment on the talks, which were first reported by Bloomberg.

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

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Dell, who is chair of VMware, owns about 36 per cent of the company’s outstanding shares, a stake worth about $15bn as of Friday’s close, according to Sentieo data.

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