Chipmaker Broadcom is reportedly in talks to snap up cloud firm VMware for an estimated $50bn (£39.7bn).
As first reported by Bloomberg, the negotiations are ongoing and a deal would diversify Broadcom’s offering into enterprise software, and follows its acquisition of CA Technologies for $18.9bn back in 2018.
Dell’s very own Michael Dell is VMware’s biggest investor with a hefty 40 per cent stake in the firm, or roughly $16.2bn worth, followed by private equity titan Silver Lake with 10 per cent.
Shares were up nearly 18 per cent in early trading on the Nasdaq for VMware, which has a market cap of $43.3bn.
Meanwhile, Broadcom is best known for wireless internet and Bluetooth chips, and is one of the world’s biggest tech firms, valued at around $210.6bn.
Headed by CEO Hock Tan, the company attempted to snap up Qualcomm for $103bn back in 2018, but withdrew the bid.
It is understood that former US President Donald Trump wanted to kill off the deal, citing national security concerns with the semi conductor firm.
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