In May, the chip giant Broadcom announced it would acquire the software firm VMware for a whopping $61 billion. Here's what you need to know about the agreement. Plus Broadcom will assume $8 billion of VMware net debt. The deal wont come cheapafter news of the potential deal surfaced, VMwares market cap soared to around $50 billion. Broadcom has agreed to acquire VMware, whose software helps corporations run their own servers more efficiently, the companies announced Thursday. By bringing together the Broadcom Software portfolio with the VMware platform, the combined company aims to provide enterprise customers an expanded platform of critical infrastructure solutions to address complex information technology infrastructure needs. Broadcom chips could be the key to that. The WSJ reports the acquisition would nearly triple the size of Broadcoms software division and account for Why Broadcom Acquired VMware The semiconductor maker is paying $61 billion in a cash-and-stock deal for the enterprise software company. Chipmaker Broadcom is in advanced talks to acquire cloud service company VMware in a cash-and-stock deal, though negotiations are still ongoing, and an agreement is not imminent. The Broadcom business case for this transaction is premised on focusing on the business model, VMware has expanded into cloud-native technologies over the years and has a diversified business, much of which is related to the cloud. Does Broadcoms VMware acquisition make sense? With a single acquisition, Broadcom (ticker: AVGO) stock was up 0.5%, and VMware (VMW) was flat at $120.56. Broadcoms acquisition of VMware would be historic in terms of impact to Broadcoms business and to the number of enterprises affected. VMware develops technology for the future and addresses a growing market. Cloud migrations take time. Analyst firm Omdias cloud and data center research practice thinks that Broadcoms goal is (1) acquire companies with established technology and client base which are Rumors are swirling that Broadcom wants to buy its way into the growing hybrid cloud market by acquiring VMware. Now let's show you a chart of a couple of companies that VMware is known for pioneering virtualization technology, an innovation that positively transformed x86 server-based This is almost $50 per share above the Once the deal is finalized, Broadcom says it will rebrand its Broadcom Software Group to operate as VMware and incorporate existing infrastructure and security software solutions under an expanded VMware portfolio. Broadcoms purchase of VMware will help the company diversify away from its core business of designing and selling semiconductors into enterprise software, which can have They can be a leader in the on-prem software market overnight with this purchase. After days of hypothesis, Broadcom has introduced its buying VMware in a large USD 61 billion cash-and-stock deal. While this might seem like a run-of-the-mill business merger, it will actually be the second-largest deal of the year globally, after Microsofts takeover of video game producer Activision Blizzard for $68.7 billion. VMware has the platform tools to counter that. Amber Nelson. After the transaction is closed, the Broadcom Software Broadcom has confirmed it intends to acquire VMware in a deal that looks set to be worth $61 billion, if it goes ahead: the agreement provides for a go-shop provision under which the virtualization giant may solicit alternative offers. Part of the reason was that investors may have already priced in the acquisition, given that speculation had been circulating since early this week. Why Broadcom Is Buying VMware. In late May, computer chip company Broadcom brokered a deal to buy cloud computing firm VMware Inc. for $61 billion. VMW is a highly diversified cloud computing software company with $13 billion in sales that will increase AVGO's revenue by 46% from 2021 levels. At $61 billion, the deal Suppose that data-center networking is the other critical piece. VMware represents a huge potential business arena for Broadcom. Yes, billion with a B. The merger also would be an opportunity to escape some of the pressures of the chipmaking market, which continues to undergo supply chain woes. Investors are split on the There was a time when things were great between the two companies. On the 26 th of May 2022, VMware announced that they received and accepted an unsolicited acquisition offer by Broadcom for $61B. By Ryan Morrison. Again, the gains today accelerating, at least so far in the market session. It also gives Broadcom a significant foothold in cloud computing, a lucrative business that the tech giants have sought to expand. Bloombergs 7/22/20 piece 5 Tech Giants That Could Buy VMware If EMC Decides to Sell It includes Oracle. Some have asked why a hardware and chip company like Broadcom would buy a software group like VMware (VMW)?The press statement from Broadcom () read: By bringing together the complementary Broadcom Software portfolio with the leading VMware (VMW) platform, the combined company will provide The deal is a combination of cash and stock, with If completed, the acquisition would be one of the biggest of the It turns out that fire was burning hot, and today, Broadcom announced it is acquiring VMware in a massive $61 billion deal. Broadcom in talks to buy VMware By Greg Roumeliotis [1/2] The Broadcom company logo is shown outside one of their office complexes in Irvine, California, U.S., March 4, Broadcom buying VMware makes sense for IoT infrastructure The Register Broadcom buying VMware could create an edge infrastructure and IoT empire 9 Hypervisor Why Broadcom is buying VMware? The new VMware, as part of Broadcom, to offer enterprise customers greater choice and flexibility to address the most complex IT infrastructure challenges Accelerates Conversely, Broadcom is down over 2%. And it is-- it would be increasing its footprint or strategy into the software as a services industry into cloud computing. We would not be surprised if AVGO bought VMWare Broadcom confirms the rumors of a few days ago that it was in acquisition talks with VMware, and why we're glad it's not Oracle. Executives said the combination would allow both companies to offer an expanded platform of crucial infrastructure services for large enterprises. Plus, read about other similar bids by Broadcom, including the failed Qualcomm purchase. As expected, the Broadcom-VMware deal is a go. Even when talks about this deal were in the rumour stage, it was speculated that Broadcom wanted to acquire VMWare to look forward and move beyond semiconductor chips According to this SEC filing, at least two companies other than Broadcom were interested in buying VMware during the go-shop period. The chip giant intends to snap up the virtualization software company for $61 billion in cash and stock, along with taking on $8 Broadcom announced plans to buy hypervisor platform vendor, VMware Inc, for US$61 billion on May 26 th this year. The stock market seemed unenthused at the official announcement on Thursday. Broadcom said Thursday it reached a deal to buy cloud-computing company VMware for about $61 billion. Broadcom hopes to convince European antitrust regulators to greenlight its $61 billion takeover of VMware early by claiming it will boost competition with public cloud giants Microsoft, Amazon, and Google. Citing sources familiar with the matter, Reuters reported Sunday that Broadcom wants to shave four months off its acquisition timeline. Software needs to be refactored. They get to jump into the data center with both feet and drive hybrid cloud deployments. S&P 500 up 1 and 1/2%, and the NASDAQ up almost a percent. It would be a massive deal, and it would also, analysts are saying, would be strategically making sense because Broadcom is a semiconductor company. While the deal has yet to close, it's already causing chaos for Michael Dell is thought to own over 40 percent of VMware and has literally billions of reasons to oppose a sale because VMware's share price has dropped markedly in recent Firstly, it allows them to expand from the manufacturing business into the software The reason why Broadcom is prepared to pay the big bucks for VMWare is twofold. It's one of the largest technology acquisition deals in history. Chipmaker Broadcom is reportedly in talks to purchase VMware in a deal worth up to $50bn. One of the largest technology acquisition deals in history Software < a href= https Reuters reported Sunday that Broadcom wants to shave four months off its acquisition timeline 50 billion potential! Href= '' https: //www.theregister.com/2022/10/17/broadcom_vmware_cloud_eu/ '' > Broadcom < /a > VMware develops technology for the and! 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