VMware

Broadcom will buy VMware in a cash-and-stock transaction valued at $61 billion, based on the closing price of Broadcom common stock on May 25, 2022, ...

Tan said in a statement that Broadcom saw strength in its networking and server storage units during the second quarter. Dell originally acquired the company when it bought EMC in 2016. Analysts surveyed by Refinitiv were expecting revenue of just over $8 billion. Broadcom is the most acquisitive semiconductor company and has strategically used mergers to fuel its growth in recent years. VMware spun off from Dell late last year in an effort to pay off debt. But Broadcom had not made a large acquisition since 2019.

The deal is a combination of cash and stock with Broadcom assuming $8 billion in VMware debt. With VMware, Broadcom gets more than the core virtualization, ...

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It's one of the biggest tech acquisitions ever, behind Dell's $67 billion EMC deal and Microsoft's pending acquisition of Activision Blizzard for $68.7 billion.

Broadcom previously failed to buy rival chipmaker Qualcomm for more than $100 billion after the Trump administration blocked the deal, citing national security concerns. The combination of VMware and Broadcom could be a powerful one, focused on enterprise infrastructure and cloud computing. Broadcom is acquiring VMware in a $61 billion cash-and-stock deal.

Broadcom Inc said on Thursday it will buy cloud service provider VMware Inc in a $61 billion cash-and-stock deal to further diversify the chipmaker's ...

Broadcom went on to slash costs at the acquired businesses. It also explored acquiring analytical software company SAS Institute Inc, but did not proceed with a bid. Advertisement Advertisement Broadcom will also assume $8 billion of VMware's net debt. Advertisement

BROADCOM announced on Thursday (May 26) a US$61-billion deal to purchase cloud computing firm VMware in a giant tech transaction that expands the ...

Broadcom will buy the cloud-computing company for $61 billion.

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Broadcom Inc said on Thursday it will acquire cloud computing company VMware Inc in a $61 billion cash-and-stock deal, the chipmaker's biggest and boldest ...

Broadcom went on to slash costs at the acquired businesses. It also explored acquiring analytical software company SAS Institute Inc, but did not proceed with a bid. Advertisement Advertisement Broadcom will also assume $8 billion of VMware's net debt. Advertisement

We'll send you a myFT Daily Digest email rounding up the latest Broadcom Inc news every morning. US chipmaker Broadcom has agreed to acquire cloud software ...

The resulting combination of chip company and software maker would be one of the most important suppliers of technology to the cloud computing market.

A deal would be the latest in a series of major changes for VMware. The company, based in Palo Alto, Calif., lost its longtime chief executive, Pat Gelsinger, to Intel in January 2021. It also believed that Wall Street would reward it with a higher share price if it separated from Dell. The combination would make Broadcom a significant player in data-center technology and cloud computing. That is more than 40 percent higher than VMware’s stock price before rumors of a deal began to circulate over the weekend. Broadcom, which was based in Singapore at the time, has moved its headquarters to San Jose, Calif. Broadcom, the semiconductor giant, said on Thursday that it had agreed to buy the software company VMware in a transaction valued at $61 billion.

Chip giant Broadcom will acquire the software maker VMware, the companies announced Thursday, which at $61 billion makes it one of the largest tech mergers ...

The companies expect the transaction to be completed in Broadcom’s fiscal year 2023, pending approval by WMware shareholders and a nod from regulators. Michael Dell, the chief executive and founder of the computing company, owns about 40 percent of VMware, and has agreed to vote in favor of the deal. Though the administration’s move also was in line with its protectionist rhetoric and initiatives, which included steep tariffs on steel and aluminum imports, and a prolonged antagonism toward China. Last year, Dell spun off its 81 percent stake in the company. But that same year, the Trump administration shut down what would have been the then-Singapore-based company’s biggest get: a merger with Qualcomm for a staggering $117 billion, citing national security grounds. VMware, too, has seen its stock fall, losing about 25 percent from its October high.

The deal is the biggest takeover ever for a chipmaker and extends an acquisition spree for Broadcom Chief Executive Officer Hock Tan (picture), who has built ...

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Once Dell spun out VMware on Wall Street, it was only a matter of time before someone would put together enough money to acquire it. A year ago, we mused.

The way the deal is structured, by the way, half of VMware will be bought with cash and half with Broadcom stock, and the deal will be prorated to make it all balance out. Its software has expanded to cover all aspects of the enterprise datacenter, its customer base is large, and that customer base is as risk averse as it has ever been. Amazon Web Services, Google, and Microsoft could all do such a deal and you could make a case for them embracing VMware to help move all those ESXi VMs to a substrate in the cloud in addition to on premises. Regulators might hem and haw, but the reality is that no one feels proprietary about VMware the way its licensees and the government of the United Kingdom did about Arm. If Softbank wasn’t a conglomerate based in Japan with all kinds of diverse holdings, the original Arm deal would not have gone through regulators, either. The secret about that Broadcom software business is that about half of its revenues are coming from IBM mainframe shops, and a very small number of accounts – around 500 according to Tom Krause, formerly chief financial officer at Broadcom and now the head of its Software Group – drive a big portion of that software revenue. And a lot of that increased profit will come from the elimination of back office functions at VMware. That’s how Computer Associates build its mainframe and Unix conglomerate, and it is not a coincidence that CA was eaten by Broadcom as its first software acquisition. But as that chart shows above, Tan knows how to leverage Avago to buy something and then de-lever the embiggened Avago (now Broadcom) so it can go out and acquire again. The last twelve months (LTM) of revenue in January 2017 after the Broadcom acquisition by Avago was complete, and again with Avago taking the Broadcom name, came to $15.6 billion. This is why Tan sold off the nascent but technically strong “Vulcan” Arm server chip business of Broadcom to Cavium, which revived the Vulcan effort as ThunderX2 and which was also essentially shut down after Marvell acquired Cavium and then saw there was not all that much money in it after all. But Tan is also going to focus VMware’s research and development where it is “uniquely positioned to innovate and drive customer success” as well as focus sales and marketing efforts across the Broadcom portfolio on that vast VMware enterprise base. (We also suggested recently that Nvidia complete the set by acquiring SUSE Linux so it would have its own Linux and Kubernetes distribution.) Such a deal would give Nvidia access to over 300,000 enterprise customers and a vast legacy installed base of somewhere north of 100 million virtual machines from which to print money. And when it was clear that Intel did not have enough money or credit to build one foundry, much less shell out enough cash to build three of them so it could take control of VMware. So forget that.

Broadcom Inc. agreed to buy cloud-computing company VMware Inc. for about $61 billion, sealing one of the largest technology deals in history and advancing ...

Broadcom Inc. agreed to buy cloud-computing company VMware Inc. for about $61 billion, sealing one of the largest technology deals in history and advancing the chipmaker’s quest to become a force in corporate software.

Infrastructure software accounted for 23% of Broadcom's net revenue last quarter. That's about to change. Chipmaker Broadcom is bolstering its software ...

“This is a landmark moment for VMware and provides our shareholders and employees with the opportunity to participate in meaningful upside.” Unix v7 in 1979 introduced the concept of isolation in the OS. So is Broadcom betting on VMs becoming the environment of choice in 10 years, albeit in a modified way? A consortium of banks have committed $32 billion in debt financing for the transaction. Through the deal, Broadcom will assume $8 billion in VMware net debt. According to its latest earnings release, infrastructure software accounted for 23% of the company’s net revenue in the second quarter, compared to semiconductor solutions. The deal expands the depth of critical infrastructure solutions both companies can provide to enterprise customers.

The role will see her drive business strategy and development as well as customer and partner relations for VMware to accelerate the adoption of digital ...

“This is an exciting time in Malaysia with markets opening up and businesses gearing for growth," Lee added. “Malaysia has made digitalisation a top priority and is actively encouraging companies to transform their businesses to remain relevant and to boost the country’s digital economy," said Paul Simos, vice president and managing director of VMware Southeast Asia and Korea. Sarene Lee has been appointed as country manager of Malaysia at VMware with the industry executive departing IBM following almost two decades of service.

Semiconductor manufacturer and infrastructure software giant Broadcom has announced that it will acquire virtualisation and enterprise cloud vendor VMware ...

"Software and hardware is increasingly interactive—a lot of hardware value is actually in software, like automation," Elliot said. The deal is the latest in Broadcom's years-long pattern of high-profile acquisitions. "Broadcom's software strategy is really about targeting the top 800 to 1,000 global [enterprise] accounts," Elliot said.

"VMware was in a quandary," an analyst told Channel Futures. Partners and analysts are giving mixed reactions to Broadcom's plans for a massive acquisition of ...

The center of cloud gravity has moved to the hyperscalers. Cloud has fundamentally reshaped the consumption of IT resources. It would raise Broadcom’s software mix from 23% of the company’s revenue to just under one-half.

Broadcom's intended acquisition of VMware might open a variety of enterprise and telco opportunities for VMware — if it is given the opportunity to further ...

Push VMware for written roadmap commitments and add price-caps and exit-clauses for multi-year license agreements." As part of Monterey, VMware enabled its ESXi hypervisor to run on the NIC, which will provide a single management framework for all the compute infrastructure, whether virtualised or bare-metal. "Validate existing inventory to prepare for licensing changes and/or to explore vendor alternatives. I think from a recent-announcements standpoint clients will be worried about their price increases, as they've experienced from Broadcom in their earlier acquisitions." There could also be synergies between VMware's Vrealize cloud-management product line, including Vrealize Automation and Vrealize Operations, and Broadcom's existing software stack based on technology the company acquired when it bought CA, said Forrester analyst Naveen Chhabra. "You could see some product rationalisation there," Chhabra said. The group has the potential to develop enterprise and telco technologies that could broaden its appeal to users in both sectors, experts say. The company has gotten off to a good start, announcing that for its first fiscal quarter this year, ending May 1, subscription and SaaS revenue was $899 million, an increase of 21 per cent year-over-year. Thus, they're deeply embedded and 'sticky' to customers." Broadcom's planned acquisition of VMware might open opportunities to reach enterprise and telco companies alike with innovative technology. "VMware has massive ambitions for putting their virtualisation stack at the 5G edge, said Keith Townsend, principal with The CTO Advisor. "Broadcom is better positioned in the telco space and may be able to open doors for VMware." "VMware has made slow and steady inroads across the spectrum of networking technology and innovation over time in a variety of areas — SD-WAN, NFV, network functions virtualisation infrastructure in telecom and enterprise areas, and I would expect that to continue," said Rohit Mehra, group vice president with IDC's Network and Telecom Infrastructure group. The question is whether Broadcom will give VMware the opportunity to further develop technologies such as 5G and a variety of new networking tools.

For VMware and Broadcom employees in Asia and the rest of the world, this could be the beginning of a new chapter for them.

Broadcom has already made most of its employees return to work in the office its headquarters and regional offices around the world. For staff in Singapore and the Asia Pacific region as a whole, the tech industry remains one of the most successful industries to work in since the pandemic started. With that said, what does the take-over mean for VMware in Asia? Should employees be worried about layoffs? VMware has also made several major acquisitions in recent years to boost its place in the industry. However, there are also some concerns about how the acquisition will impact the employees of VMware. Broadcom’s last major acquisition was CA Technologies for US$18.9 billion in 2018. But, let’s not forget that Broadcom did also try to acquire Qualcomm in 2018 for US$ 117 billion only for former US President Donald Trump to block the attempt, citing national security concerns.

The $61 billion acquisition of VMware reflects growing demand for software applications that replace expensive computer hardware.

VMware allows companies to easily transport that data where it needs to go, he said. After a series of ownership changes, Dell Technologies Inc. said last year that it would spin off VMware Inc. Virtual machines can be shifted among data centers, private clouds and public clouds. In February, VMware reported $12.85 billion in total revenue for its 2022 fiscal year, up 9% from 2021, fueled by online software revenue. The idea of virtualization is key to that modernization. In recent decades, that concept has been used to replace expensive, hardware-based computing systems with more efficient software-based ones.

Hock Tan and Michael Dell agreed industry-defining deal, codenamed 'Project Atlas,' within two weeks.

This is an excerpt from Deal Flow, Forbes' twice-weekly newsletter about the latest billion-dollar deals from venture capital, private equity, M&A and beyond.

And they’ve turned into a crucial cog in the economy, a key piece of infrastructure that, to some investors, functions as something of an index for the entire e-commerce space. You’ll get detailed analysis of the day’s biggest deals—plus a rundown of other recent headlines, recommended reading, deal developments to watch and more. The round was announced this week, but as my colleague Kenrick Cai reports, the company actually closed the deal in January, before the market for tech startups took a turn for the worse. But now, the economic environment for a major tech startup is very different—see the above news about Bolt. What will that mean for Stripe? How do the Collisons plan to navigate these choppy waters? If the deal goes through, it would be the largest debut in the U.S. by a Chinese company since Didi. The ride-hailing company promptly found itself at the center of a showdown between Chinese regulators and the country’s tech industry, with disastrous effects: Didi now has a market cap of $8.7 billion and plans to delist from the NYSE. Experts and insiders had predicted this could be a year filled with mega-funds, as major buyout firms sought to replenish the billions they spent on a record-setting deal spree in 2021. The industry’s only larger vehicle to date came from Blackstone, which raised $26 billion for a flagship fund in 2019. Just seven months ago, Gorillas raised about $1 billion in new funding at a valuation north of $3 billion. (That’s one of the few tech deals ever with a higher price tag than this week’s Broadcom deal.) Dell retained about 40% of VMware stock after spinning out the company last November; this transaction values that stake at more than $24 billion. So in the interest of covering as much ground as we can, let’s try something a little different: Instead of going deep on one deal and then jumping to two or three Deal Dives, we’re going to run through all the biggest developments from the past few days in one fell swoop. In Tuesday’s newsletter, we covered how this deal fits into Broadcom’s track record of big-ticket M&A. After first establishing itself as a giant in the semiconductor industry by rolling up several smaller companies, Broadcom and CEO Hock Tan are now trying something similar in the enterprise software space.

Large, seasoned VMware partners warn that a Broadcom acquisition could stall big-dollar licensing agreements as enterprise customers wait to see if the new ...

“The question is, are they going to cut all the expenses out: all of the reps, all of the support people,” the partner asked. “We need to know what their go to market and technology vision is for the future,” said the sales executive. But I don’t see how Broadcom leverages the investment, if they don’t try to tuck it in.” “When I look at that in its totality, what we can’t do today, we can definitely take advantage of with the newfound scale between the two companies.” One said Broadcom could be just what VMware needs to reach its potential, if it invests in the channel. A big question hovering over the Broadcom acquisition of VMware is how it will affect VMware’s software licensing relationships with Dell Technologies and Hewlett Packard Enterprise, said the sales executives. They need to reconnect to the channels in a bigger and stronger way than ever.” A top sales chief for an SP 500 company, who did not want to be identified, said there is a lot of angst in both the channel and among VMware employees in the wake of the blockbuster deal. They have to come and build a strong channel to scale the business. “This customer did not have a positive experience with Broadcom and wants to expedite the deal,” he said. They need to show they are not just in maintenance mode, milking the VMware renewals. C.R. Howdyshell, president of Advizex, No. 153 on the CRN SP500, told CRN that customers are also concerned about the impact a Broadcom deal could have on their VMware relationship.