Negotiations between Broadcom and VMware are ongoing and a deal is unlikely.
Chipmaker Broadcom Inc is in talks to acquire cloud service provider VMware Inc, people familiar with the matter told Reuters.
Negotiations between Broadcom and VMware are ongoing and an unlikely deal is imminent, the sources said. The terms of the agreement under discussion cannot be learned.
The acquisition will further diversify Broadcom’s business from semiconductors and into enterprise software, following the $18.9 billion acquisition of CA Technologies and the purchase of Symantec Corp’s security division. 10.7 billion USD in the past 4 years.
Bloomberg news agency first reported on the deal late on Sunday. Broadcom and VMware did not immediately respond to Reuters’ request for comment. At market close on Friday, VMware’s market capitalization was $40.3 billion.
Michael Dell is VMware’s biggest investor with a 40% stake since Dell Technologies Inc spun off VMWare to its shareholders last year, according to Refinitiv data.
Private equity firm Silver Lake, which previously invested in Broadcom, is VMware’s second-largest shareholder with a 10% stake, Refinitiv data shows.
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