May 24, 2022

Broadcom is negotiating a $60 billion acquisition of VMware. According to sources close to the issue, Broadcom will pay about $140 per share in cash and shares for VMware.

If the negotiations prove successful, a deal could be announced as early as Thursday, when VMWare is due to report quarterly results.

“A VMware acquisition would just about triple the size of Broadcom’s software segment, as well as bring the overall software mix close to 50% for the combined company,” Bernstein analysts said.

The acquisition of VMware means that the company will now have access to Broadcom date centers.

“We believe an acquisition of VMware would be considered as making strategic sense; consistent with Broadcom’s focus on building a deepening enterprise infrastructure software strategy,” Wells Fargo analysts said.

With regular acquisitions since Hock Tan became CEO, Broadcom has become a business worth more than $200 billion

The sources for this piece include an article in Reuters.