Chipmaker Broadcom In Talks To Buy Cloud Company VMware
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.
Negotiations between Broadcom and VMware are ongoing and a deal is not imminent, the sources said. The deal terms under discussion could not be learned.
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.
VMware and Broadcom declined to comment on the talks, which were first reported by Bloomberg.
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.
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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