Broadcom to Acquire VMware in Blockbuster $61 Billion Cloud Computing Deal

Rumors have swirled for the past week that Broadcom was in talks to purchase VMware. Today, the chip maker confirmed its intentions by announcing that it will acquire VMware for $61 billion in cash and stock

This Broadcom-VMware tie-up would be among the largest ever in the tech industry. Dell bought EMC for $67 billion back in 2015. Earlier this year, Microsoft made a $68.7 billion deal to purchase gaming giant Activision Blizzard. The deal values VMware at $142.50 per share, representing a 44 percent premium compared to the closing price on May 20th (the last trading day before news of the impending deal was first reported). 

VMware specializes in virtualization and cloud computing, which is an incredibly hot market segment in the enterprise world. VMware offers virtualized software solutions supported across all major desktop operating systems (Windows, Linux, macOS) and enterprise software solutions for server hardware platforms. Dell spun off VMware, which it acquired in 2015 as part of its EMC transaction, just over a year ago.  

For his part, VMware CEO Raghu Raghuram added, "Combining our assets and talented team with Broadcom's existing enterprise software portfolio, all housed under the VMware brand, creates a remarkable enterprise software player." 

Brandon Hill

Brandon Hill is a senior editor at Tom's Hardware. He has written about PC and Mac tech since the late 1990s with bylines at AnandTech, DailyTech, and Hot Hardware. When he is not consuming copious amounts of tech news, he can be found enjoying the NC mountains or the beach with his wife and two sons.

  • Exploding PSU
    Whoa, I didn't even know Broadcom had THAT amount of cash at the ready
    Reply
  • sepuko
    If the shareholders don't want to destroy VMware they should put a halt on that deal. Broadcom has a terrible reputation with acquisitions. But then again, it pumps their stock value so why not.
    Reply