Broadcom agrees to buy VMware for $61 billion
Chipmaker Broadcom has announced that it agrees to acquire cloud computing company VMware to the tune of $61 billion in a cash-and stock deal. This is Broadcom’s most significant shift towards diversifying its business into the enterprise software industry.
The deal offers $142.50 per VMware stock, which comes out to an approximate premium of 49% over the stock’s closing price on the last close before reports of a deal began to break on May 22. Broadcom’s shares are up 3% and VMware is up 2%. As part of the deal, Broadcom will also adopt VMware’s $8 billion net debt.
Last year, Dell Technologies spun out VMware, which Michael Dell owns 40% stake, and his financial backer Silver Lake, owns 10% - both voted in favor of the deal.
VMware’s offer from Broadcom was unsolicited, and so the company will be allowed to solicit offers from other bidders for 40 days as per its agreement with Broadcom.
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Reader comments
- AnonD-731363
- 29 May 2022
- Lfw
Man i am not him but thats for your support and thanks for your care.
- AnonD-731363
- 29 May 2022
- Lfw
Like the chicken invaders game. They sounds just like the developers of that.
- Darknoor
- 29 May 2022
- m4y
I am a big time boomer but then again in the Middle East we did not really have much news about such stuff at the time so I too never heard of them. It is interesting to do tho.