Broadcom announces plan to buy VMWare in $61B deal

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Broadcom is set to purchase VMWare in a cash-and-stock deal valued at around $61 billion, a move that could help the semiconductor company move into the enterprise software space.

Broadcom headquarters
Broadcom headquarters


The two companies announced the deal, which would be one of the largest technology acquisitions ever, on Friday. The $61 billion price tag is based on the closing price of Broadcom stock on May 25, according to CNBC.

Broadcom produces semiconductors and wireless chips for the electronics industry, and is a long-time Apple supplier. The company, for example, made Wi-Fi 6E modem chips for the iPhone 13 and iPhone 13 Pro.

Through the acquisition of VMWare, which makes products aimed at virtualization and enterprise cloud computing, Broadcom will be able to diversify away from its own core business of semiconductor design. VMWare spun off from Dell -- which bought the company in 2016 -- in late 2021 in an effort to pay off debt.

Mac users likely know the name VMWare because of the company's desktop virtualization software, which lets users create and run virtual machines with various operating systems on their computers. It isn't clear how the acquisition will affect VMWare's consumer or enterprise products.

Broadcom has a habit of acquiring companies. Back in 2018, it purchased technology firm CA Technologies for $18.9 billion. In 2019, it bought cybersecurity company Symantec for $10.7 billion.

The chipmaker attempted to acquire modem producer and Apple supplier Qualcomm in 2018 in an $117 billion deal. However, that acquisition was blocked by then-President Donald Trump, who cited national security concerns.

Broadcom's bid to acquire VMWare would be among the largest deals in the technology industry, just behind Microsoft's pending $69 billion deal to buy Activision Blizzard and Dell's $67 billion purchase of EMC in 2016, in which it also acquired VMWare.

Read on AppleInsider

Comments

  • Reply 1 of 9
    rob53rob53 Posts: 2,954member
    I have to wonder why VMWare can't seem to stick with any company. It just keeps being sold to someone else trying to find a home. The fact it can't find a home makes me wonder whether there's something majorly wrong with it and it's corporate structure.
  • Reply 2 of 9
    argonautargonaut Posts: 126member
    My experience with Broadcom taking over Symantec's Enterprise Security Division business back in 2019 was a bit of a disaster, at least in terms of the migration/integration of Symantec into their system/support infrastructure. They've just recently offloaded the software support role for those products to another company ( Arrow ) - maybe that will be an improvement...  We deploy VMware in our Cloud Infrastructure/data centers  ( as I'm sure many do) ,  let's hope this acquisition will be a smoother transition for VMware customers.
    techrider
  • Reply 3 of 9
    Broadcom, like Computer Associates (who Broadcom also acquired), is becoming "where software companies go to die". This does not bode well for VMware, IMO, unless they can stay away from Broadcom interference.
  • Reply 4 of 9
    Also, Broadcom has been in the "enterprise software space" for years - witness the acquisitions of Computer Associates in 2018 and the enterprise security business of Symantec.
  • Reply 5 of 9
    ciacia Posts: 178member
    The iPhone 13 series (pro and non-pro) only have Wifi 6.  They do not have 6E as the article mentions.
  • Reply 6 of 9
    sflocalsflocal Posts: 5,961member
    VMWare Fusion is one product I still use to this day.  My job requires I run Windows and for testing, I still go as far back to Windows7.  It’s another reason why I bought my 2020 iMac as I knew x86 was going bye-bye on the Mac.  

    Fusion is still the best hypervisor for the a Mac.  I’ve been using it since the v4 days it’s that good.  

    I still remember 10 years ago when the engineers at VMWare invited me to their labs in Silicon Valley to sit besides them and help troubleshoot some hardware I had that would not work in Windows on the Mac.  It was an incredible experience and support.  They earned my business every year when they release a new update.  No other company would do that.

    I know fusion’s days are numbered now, especially with x86 no longer available on Macs (except Mac Pro), but as long as my iMac is working, it will still have a home.
    muthuk_vanalingam
  • Reply 7 of 9
    danoxdanox Posts: 963member
    rob53 said:
    I have to wonder why VMWare can't seem to stick with any company. It just keeps being sold to someone else trying to find a home. The fact it can't find a home makes me wonder whether there's something majorly wrong with it and it's corporate structure.
    VMWare is like a content Movie, TV, or game company resold every 5-10 ten years, not something you should buy Apple…. Hint.
    edited May 26
  • Reply 8 of 9
    michelb76michelb76 Posts: 386member
    Awesome win for Michael Dell here! Getting what, 24 billion from this?
  • Reply 9 of 9
    dewmedewme Posts: 4,250member
    rob53 said:
    I have to wonder why VMWare can't seem to stick with any company. It just keeps being sold to someone else trying to find a home. The fact it can't find a home makes me wonder whether there's something majorly wrong with it and it's corporate structure.
    If I had to guess I’d say their products serve a niche market that has continued to move to offsite hosted cloud based services like AWS and Azure. Their desktop virtualization products like Workstation and Fusion are probably a very small slice of their total sales compared to their on-premise and hybrid cloud solutions that are somewhat popular in modern software development circles. 

    I’ve always been a fan and frequent user of Workstation and Fusion, the latter being an incredibly useful and stable utility for Intel based Macs. Apple’s move to M1 has definitely been a stake through the heart for hosting x86 Windows VMs on new Macs. I don’t think Apple set out to cripple Fusion and the ability to run x86 Windows and Linux VMs on Mac when it abandoned Intel architecture. It’s just an unfortunate side effect of the Apple Silicon transition.

    I suppose later and more powerful Apple Silicon chips could bring back x86 support, but it probably won’t matter. The market will probably have moved on to other approaches by that time. Those few folks who need an x86 Windows or Linux machine running in the same desktop context, i.e., same keyboard, video, mouse, etc., sitting in front of them will attach a second Intel computer (a NUC perhaps) and use a KVM device or equivalent capability built into their monitor and some sort of bridging utility to allow data sharing and copy & paste between physical computers. It’s kind of like what happened with disk compression software. Once the price of the hardware based storage dropped the desire to squeeze more capacity from what you already had was greatly reduced. 
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