U.S. Chipmaker Broadcom is in talks with VMware regarding an acquisition that could be valued as high as $60 billion. Broadcom, which is known for the manufacturing of semiconductors, is looking to expand its abilities to capitalize on other markets. The acquisition of VMware would do just that by giving the company a strong foothold in cloud computing services.
This is not the first time that Broadcom has attempted an ambitious acquisition. Broadcom, which was initially a California-based company until its acquisition by Avago Technologies, moved the company to Singapore. Since then, Broadcom attempted to acquire Qualcomm, but the deal was met with an abrupt end when former President, Donald Trump, signed an executive order blocking the deal due to “national security concerns.”
The new interest in VMware, which has been considered one of the most important companies within the cloud computing industry, has sparked due to decreasing share prices leaving the company more interested in takeovers. Any takeover of VMware would offer a huge payout for the company’s current owner Dell, who acquired VMware back in 2016.
Source: Financial Times
