Broadcom begins negotiations to acquire VMware

According to reports, the giant of chip manufacturers Broadcom is looking to acquire VMware.

Acquisition talks are currently underway, although the deal has not yet been finalized, Bloomberg announced Sunday night.

Although the terms have not been announced, the publication said the potential price of the deal could be higher than VMware’s current market value of about $ 40 billion.

VMware generated revenue of $ 12.85 billion in its most recent fiscal year, ending January 28, 2022, up nine percent year-over-year. Its subscription and SaaS revenue grew 24% annually to $ 3.20 billion.

If a deal is reached, it could be one of the biggest acquisitions to hit the channel since Dell acquired EMC in 2016 for $ 67 billion.

Broadcom and VMware did not comment to Bloomberg on the potential acquisition.

The move comes after Dell completed its 81 percent stake in VMware last November.

Michael Dell continued as chairman of VMware and is also a significant shareholder in the company.

If Broadcom acquires VMware, the company will expand its enterprise software business after acquiring CA Technologies and Symantec in 2018 and 2019, respectively.

Broadcom’s acquisition of Symantec by $ 10.7 billion (£ 8.3 billion) has caused some concern from the channel.

At the time, partners expressed concerns about rumors that Broadcom plans to take Symantec’s top 1,500 customers directly, while disties told the sister publication Channel Partner Insight that they were concerned about Broadcom’s silence on its channel strategy after the acquisition. Symantec.