US Broadcom in Talks to Acquire VMware

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] U.S. semiconductor fabless company Broadcom is reportedly pursuing the acquisition of software firm VMware, Bloomberg News reported on the 22nd (local time), citing multiple anonymous sources.

According to the report, Broadcom and VMware are currently in acquisition talks, but it is uncertain whether the negotiations will be finalized, sources said. Bloomberg noted that neither Broadcom nor VMware has commented on the matter.

Broadcom has been pursuing large-scale software company acquisitions. Hock Tan, Broadcom's CEO, hinted at further acquisitions after acquiring Symantec's security business for $10.7 billion (approximately 13.6 trillion KRW) in 2019 and CA Technologies for $18.9 billion.

Founded in 1998, VMware was acquired by EMC in 2004 and went public through an IPO in 2007. It was acquired again in 2016 when EMC was acquired by Dell, and was separated from Dell last year. As of the 20th, VMware's market value is around $40 billion, while Broadcom's is $222 billion.