Broadcom reportedly in talks to buy VMware
Chip maker Broadcom Inc. is in negotiations to buy enterprise cloud-computing company VMware Inc., according to multiple reports Sunday night.
Bloomberg News, Reuters, the New York Times and the Wall Street Journal reported the ongoing talks but did not mention a purchase price; as of Friday, VMware VMW,
The reports said said talks are ongoing, and it’s possible no deal will be reached.
San Jose, Calif.-based Broadcom AVGO,
“M&A has played a central role in Broadcom’s growth strategy and this transaction represents the next logical step in our strategy,” Broadcom Chief Executive Hock Tan said after the Symantec deal in 2019.
Broadcom topped Wall Street’s estimates when it reported fiscal first-quarter earnings in March. The company is scheduled to report second-quarter earnings June 2.
Last year, Dell Technologies Inc. DELL,
Broadcom shares are down 18% year to date, while VMware is down 17%, roughly in line with the S&P 500’s SPX,