Followed by the largest deal of Microsoft acquiring video game producing firm Activision Blizzard for $68.7 billion, Broadcom Inc. is holding discussions with VMware to take over its business, making the second-largest deal globally for $61 billion! This article will walk you through the discussions Between the two companies for the Broadcom VMware acquisition and will give you a sneak peek into the deal. Read here.
Broadcom VMware Acquisition
According to a statement by a person associated with the world’s second-largest deal followed by Microsoft’s takeover of Activision Blizzard, the Broadcom VMware acquisition is underway. The Broadcom VMware acquisition if takes place successfully will allow Broadcom Inc. to diversify its business from a chip producing firm to a software company.
According to reports, the deal allows the VMware shareholders to either receive a cash amount of $142.50 or 0.2520 shares of Broadcom common stock for each VMware share. Having a market valuation of $50.3 billion, the share rose after the news of the Broadcom VMware acquisition news spread. While on the other hand, followed by the completion of the deal, Broadcom would rebrand itself as VMware!
Broadcom Had The Capacity For A “ Good Size Acquisition
While Broadcom was previously reported to takeover SAS Institute Inc. and Qualcomm Inc a few years back, those deals could not be completed after the then President Donald Trump rejected the proposal citing national security issues.
VMware after it failed to run a successful venture, tried to change hands after it sold itself to EMC Corp in 2004, and later Dell Technologies acquired it in 2016, followed by a spin-off of VMware from Dell recently. But, the Broadcom VMware acquisition would not only enable the Broadcom shareholders to own 88℅ of the firm, but it will also enable Broadcom to own VMware’s data centers.
Also Read – Activewear Campus Share Price – 23℅ Premium Over Issue Price
Also Read – When Will LIC IPO Release, Planning to Buy LIC IPO In 2022?
Conclusion
In the words of the Chief Executive Officer of Broadcom, Hock Tan, the Broadcom VMware acquisition spending is “ On Fire” and the company is still able to take over more businesses! Tan also warned that while semiconductor businesses have seen growth and profit over the years, the businesses could not be sustained and so chip companies should look for ways to diversify their business!
While Wells Fargo stated that “An acquisition of VMware would be considered as making strategic sense; consistent with Broadcom’s focus on building out a deepening enterprise infrastructure software strategy.”
For more related information, visit Finance – Trending Reader.
