Image: Broadcom

Broadcom has shared a press release confirming its plan to acquire VMware in a deal worth approximately $61 billion in cash and stock. Assuming that it successfully closes, this deal is set to make history as one of the biggest technology acquisitions ever, being up there with other highly publicized pacts that include Microsoft’s proposed acquisition of Activision Blizzard for $69 billion and Dell’s $67 billion purchase of computer storage giant EMC in 2016. Broadcom believes that its acquisition of VMware will make it easier for the company to diversify beyond its core business of semiconductors to enterprise software, a segment that potentially offers even greater margins. The Broadcom Software Group will rebrand and operate as VMware if the transaction closes.

VMware, a leading provider of multi-cloud services for all apps, pioneered virtualization technology, an innovation that positively transformed x86 server-based computing. VMware then created the software-defined data center and played a leading role in virtualizing networking and storage, before evolving to become a hybrid cloud and digital workspace leader. Today, VMware’s multi-cloud portfolio, spanning application modernization, cloud management, cloud infrastructure, networking, security and anywhere workspaces, forms a flexible, consistent digital foundation on which the largest and most dynamic enterprises across industries build, run, manage, connect and protect their most important and complex workloads for the benefit of their customers.

Source: Broadcom

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6 comments

  1. I always thought it was odd that VMWare became a Dell property.

    This is an even odder coupling.
    You have to remember how VMware was created. VMware was a company created by Dell and EMC in a joint venture establishing the 3rd party which was majority owned by EMC. When Dell purchased EMC for 60 some odd billion VMware was a part of that merger. Later they sold off VMware as it's own company and it has sense grown quite nicely. Now it is 40% owned by Dell but a traded company being majority owned by Broadcom. I find it interesting that Broadcom is big enough to do this and it makes me want to find a infrographic showing what Broadcom owns.

    Wow... this will be a bit of a topic change...
    1653626209081.png

    So looking at this in 2018 Microsoft was worth 883b In 2021 they were worth 2.2 TRILLION. Their market cap almost tripled in 3 years... that IS INSANE. Amazon wasn't even a trillion dollar company 4 years ago?! WTF...

    And we wonder why we have inflation...
  2. Broadcom is one of the largest OEM providers of enterprise network solutions. That also includes switches and some other things. They are the defacto OEM for both Dell and HPE. When you order a server, it's got a Broadcom NIC in it unless you pay more for Intel controllers. That's worth while as Broadcom has largely always made subpar NICs.
  3. I thought MS Azure and Amazon Cloudfront were the biggest cloud providers.
    VMWare is the back end virtualization platform, and front end with vCloud, for the majority of cloud services providers.

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