CNBC’s David Faber reports Monday on the fact that BroadcomIt was preparing to announce the acquisition VMwareThe news will be out Thursday but it could arrive sooner than that, as several reports have indicated they were already in negotiations.

Faber indicated that some material terms remain to be agreed upon and that the deal might not go through.Squawk on the Street.” According to people familiar with the matter, it would likely be cash-and stock offers. About 40% of VMware is owned by Michael Dell.

VMware shares rose 18% on Monday morning. In the meantime, shares of VMware jumped 18% early Monday. However, chipmaker Tektronics fell 4%. Bloomberg published the news that two companies had entered talks on Sunday.

VMWare’s deal with VMWare (which had a market capital of $40.3 billion as Friday’s close) would be among the largest acquisitions in tech, just behind Microsoft’s almost. $69 billion of Activision BlizzardAnd Dell’s $67 billion EMCBuy in 2016.

Broadcom may be able to further diversify from semiconductors and move into enterprise software. This has been Broadcom’s key focus. This would be in addition to its recent acquisitions. CA TechnologiesFor $18.9Billion in 2018, SymantecFor $10.7 billion in 2019,

They are particularly looking for mission-critical, sticky enterprise software that is focused on Fortune 500 companies. Recent software stock drops may help make these deals more easy
Now,” AB Bernstein analysts stated in a Monday note for investors.

— CNBC’s Michael Bloom contributed to this report.

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