The acquisition of cloud and virtualization giant VMware by chip giant Broadcom is about to be announced, stakeholders told the Wall Street Journal. The deal will cost $60 billion and translate to around €56 billion. The deal will be announced on Thursday.
Broadcom is known as a hardware-oriented company with a wide range of products powered by chips and semiconductors. VMware is the opposite; A company specializing in cloud computing and virtualization.
Meanwhile, VMware is Intel’s rival in several respects, as current Intel CEO Pat Gelsinger previously served as VMware CEO for almost 10 years. It is no accident that Intel has invested heavily in cloud products and applications led by Gelsinger.
There have been reports lately that VMware has been taken over by Broadcom. Reuters and Bloomberg, among others, reported the same thing, but this is the first time a tangible amount has been mentioned. If the €56 billion amount is correct, it’s one of the biggest tech acquisitions ever, although Microsoft’s acquisition of Activision-Blizzard remains the sole dominion in this space.
Sources: Wall Street Journal (paywall), via The Register
Source: Hardware Info
