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Broadcom Buying VMware as “Empire Building” Streak Continues

publication date: May 27, 2022
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Image Shown: Broadcom Inc is acquiring VMware Inc and the deal will significantly increase its enterprise software business. Image Source: Broadcom Inc and VMware Inc - May 2022 IR Presentation. 

Continuing with its acquisitive streak, the semiconductor and enterprise software giant Broadcom Inc announced on May 26 that it would acquire hybrid cloud services provider VMware Inc through a cash-and-stock deal that values VMware at ~$61 billion. Additionally, Broadcom will assume ~$8 billion in net debt from VMware. This follows in the footsteps of Broadcom’s $18.9 billion deal to acquire CA Technologies in 2018 and its $10.7 billion deal to acquire the enterprise security business of then-Symantec, now NortonLifeLock Inc, in 2019. Under the leadership of Hock Tan, Broadcom’s CEO since 2006, the company has built itself into a tech powerhouse through a series of acquisitions. In 2018, Broadcom formally ended its attempt to acquire Qualcomm Inc in the face of antitrust concerns and adjusted its strategy accordingly. By growing its enterprise software business, namely through acquisitions, Broadcom was largely able to avoid antitrust concerns. However, it remains to be seen if regulators will give their blessing to this pending acquisition.


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