On this photograph illustration, the VMware emblem is seen on a smartphone and within the background. Chipmaker Broadcom is in talks to accumulate cloud service supplier VMware, individuals accustomed to the matter advised Reuters.
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Negotiations between Broadcom and VMware are ongoing and a deal just isn't imminent, the sources mentioned. The deal phrases underneath dialogue couldn't be discovered.
The acquisition would additional diversify Broadcom's enterprise away from semiconductors and into enterprise software program, following its $18.9 billion acquisition of CA Applied sciences and its $10.7 billion buy of Symantec Corp's safety division within the final 4 years.
Bloomberg Information first reported the deal late on Sunday. Broadcom and VMware didn't instantly reply to Reuters' requests for remark. As of Friday's market shut, the market capitalization of VMware was $40.3 billion.
Michael Dell is VMware's greatest investor with a 40% stake because of Dell Technologies having spun out VMWare to its shareholders final yr, in response to Refinitiv knowledge.
Personal fairness agency Silver Lake, which has beforehand invested in Broadcom, is VMware's second largest shareholder with a ten% stake, Refinitiv knowledge reveals.