Broadcom reportedly in talks to acquire VMware
This photo shows the VMware logo displayed on a smartphone. According to people who know, Broadcom Chipmaker is considering buying cloud provider VMware.
Pavlo Gonchar | Lightrocket | Getty Images
Sources said that negotiations between Broadcom, VMware and Microsoft are continuing and that a deal was not in the cards. We are unable to confirm the details of the agreement.
Broadcom would be able to diversify its business from semiconductors into enterprise software. This follows its $18.9billion acquisition of CA Technologies, and the $10.7billion purchase of Symantec Corp.’s security unit in the past four years.
Bloomberg News reported on the agreement late Sunday night. Broadcom, VMware and other interested parties did not respond immediately to Reuters’ request for comment. The market capitalization for VMware stood at $40.3 billion as of Friday’s close.
Michael Dell holds a 40% share in VMware. Dell TechnologiesAccording to data from Refinitiv, VMWare was sold to its shareholders in December 2013.
Private equity firm Silver LakeRefinitiv data indicates that Broadcom investor EE is VMware’s second biggest shareholder and holds a 10% interest.