Broadcom's Potential VMware Acquisition: 5 Things About Dell, Stock Prices And Hock Tan To Know - CRN

From Michael Dell And Hock Tan To VMware Project Monterey: 5 Key Things To Know

Broadcom could shake up the software industry with the potential acquisition of VMware, a $12 billion virtualization and hybrid cloud superstar that just recently became an independent company.

Multiple news outlets are reporting today that San Jose, Calif.-based Broadcom is currently in talks to purchase VMware, who’s Palo Alto, Calif.-based headquarters are located close to Broadcom. The deal is in the discussion phase, according to Bloomberg, which first reported the news.

Broadcom has a market cap of $212 billion, while VMware has a market capitalization of around $47 billion.

The deal would provide Broadcom with one of the largest enterprise software companies in the world as well as new technology to boost its semiconductor business. Broadcom is a global technology conglomerate with a wide range of products—from storage and networking devices to chips and sensors.

As data centers become even more critical to power cloud computing, VMware’s software strong position in the data center and push towards hybrid cloud and software-as-a-service (SaaS) is driving consistent sales growth. Both VMware and Broadcom have thousands of channel partners spanning the globe.

Financial investment firm Wells Fargo said today that VMware would make “strategic sense” for Broadcom.

“Investors have been increasingly focused on Broadcom’s appetite for another strategic or platform enterprise software acquisition—especially given the recent compression in software valuation,” said Wells Fargo analysts in a note today. “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.”

It wouldn’t be the first time Broadcom has made a massive IT acquisition, and it wouldn’t be the first time VMware has been acquired by a larger technology giant.

From VMware Chairman and Dell Technologies CEO Michael Dell to recent acquisition comments from Broadcom CEO Hock Tan, CRN breaks down the five biggest and most important things to know about Broadcom’s potential acquisition of VMware.

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Broadcom's Potential VMware Acquisition: 5 Things About Dell, Stock Prices And Hock Tan To Know - CRN
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