US chipmaker Broadcom is in talks to acquire cloud service provider VMware in a deal that could diversify the technology company’s services, Reuters reports.
According to informed sources, negotiations between Broadcom and VMware are ongoing and it is likely that there will be a deal, although the companies have not yet commented on the issue. The terms of the deal under discussion are unknown.
Broadcom manufactures a range of chips needed to assemble a variety of products such as mobile phones, telecommunications networks and more. The purchase of VMware will also give the company access to data centers.
Michael Dell is VMware’s largest investor with a 40% stake since the company split from Dell Technologies last year. An agreement of this magnitude would be of great benefit to him.
Broadcom CEO Malaysian-American billionaire Hawk Tan took over the helm of the chipmaker in 2006. Many acquisitions have helped turn the business into a giant worth more than $ 200 billion.
Tan’s boldest move was to try to buy mobile chip maker Qualcomm for $ 103 billion in 2017. The deal was blocked by US President Donald Trump on the grounds that it would give China dominance in mobile communications. Now Tan is looking for another big deal.
Broadcom is relocating its headquarters in San Jose from Singapore. It subsequently expanded its software offering to acquire CA Technologies for $ 18.9 billion and Symantec’s security division for $ 10.7 billion.
VMware has a market capitalization of $ 40 billion and is one of the leading companies in the cloud services industry. The company has offices in 24 countries, including Bulgaria.
In recent years, there has been interest in taking over the company.
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