Sources: Broadcom is in talks to acquire VMware, which has a ~$40B market cap; the discussions are ongoing and there's no guarantee they will lead to a purchase
Broadcom Inc. is in talks to acquire cloud-computing company VMware Inc., according to people familiar with the matter …
Bloomberg
Context & Ripple Effects
The reported discussions quickly moved from an exploratory transaction to a reported roughly $60B proposal, then to Broadcom’s announced cash-and-stock agreement valuing VMware at about $61B and including VMware’s net debt. That sequence shows how far the negotiations advanced beyond VMware’s approximately $40B standalone market value.
The combination later faced approval conditions centered on access and interoperability in Europe, while Chinese clearance added restrictions before closing. The deal therefore became a test of whether Broadcom could add VMware’s cloud software without limiting customer or rival access to key infrastructure.
First-order effects
Broadcom and VMware’s negotiations establish a transaction benchmark that is later reflected in reported per-share terms near $140 and a much larger enterprise value once VMware debt is included.
VMware’s customers, partners, and employees face immediate ownership uncertainty as Broadcom evaluates how its software business would fit alongside its existing infrastructure portfolio.
Second-order effects
The prospective combination draws competition scrutiny over access and interoperability, concerns later formalized in the EU’s conditional approval of the transaction.
Enterprise infrastructure buyers gain leverage to seek continuity commitments from VMware and Broadcom, because a change in control can alter product access and commercial relationships.
Third-order effects
The deal points to further consolidation between infrastructure hardware suppliers and enterprise software platforms, with regulatory access commitments becoming a central constraint on such combinations.
Broadcom’s later VeloCloud portfolio reshaping, including reported plans for an Arista acquisition, suggests that large infrastructure acquisitions can be followed by selective asset reallocation rather than a permanently fixed product portfolio.
The trend: Enterprise infrastructure is consolidating around broader hardware-and-software platforms, while regulators increasingly condition scale on continued interoperability and customer access.
Broadcom couldn't buy any more semiconductor companies so they switched to software and the roll up gets more complex every acquisition. Eventually it will fail. Broadcom in Advanced Talks to Buy VMware - WSJ https://www.wsj.com/...
Why do I hate the idea of Broadcom buying VMware? Because my job is hard enough as it is. A VMware in maintenance extraction only mode is one less innovator in my space. The people I serve could really use innovative VMware vs. maintenance mode. No one asked for this vMotion!
@sarbjeetjohal ... I agree with @Scobleizer - great move for Broadcom. Hock Tan is a business genius & this would be a huge chess move. So many possibilities. The ultimate arms dealer. And yes @furrier, Broadcom would be infrastructure for supercloud providing Nitro-like capabili…
Broadcom acquiring VMWare makes little sense. But then again, Broadcom is a financial engineering machine that needs an acquisition every few years to keep its stock price high. https://www.bloomberg.com/...
“Broadcom in Talks to Acquire Cloud Company VMware” This will be a big one in the sector....VMWARE may go closer to $45-50 billion.. https://www.bloomberg.com/...
Most people in tech already doesn't like Broadcom... If $AVGO buys VMWare 🤢🤮 Hock Tan special of cutting R&D and increasing prices in acquisitions 😭 VMWare is already in a shit position due to cloud. Will @PGelsinger make a counteroffer on $VMW ? https://www.reuters.com/...
@dvellante ... I hate the idea of Broadcom buying VMware. Who exactly would lead this integration? May go down as the worse in enterprise tech history.
Broadcom playbook for acquisitions I've seen in the past: -gut R&D -gut OPEX -raise prices -increase exec comp -lose market share Maybe this one is different. $AVGO needs acquisitions to feed the roll up. $VMW $AVGO https://twitter.com/...
Chipmaker, @Broadcom looking to buy @VMware seems a bit odd to me, but nothing is normal these days. Current @VMware market cap is ~$40 billion. Broadcom's market cap is ~$223 billion. @om @furrier @Craw @rseroter @cxi @digitalcloudgal @BillMew @nyike @symantec @CAinc @nyike http…