American chipmaker Broadcom is now in talks to acquire cloud computing and virtualization tech firm VMware Inc. in a deal likely to be worth over $50 billion.
Source: Financial Times
AVGO is down 4.55%, while VMW is up 19.10%.
A takeover could drive a windfall for Michael Dell, who purchased the firm in 2016, along with private equity firm Silver Lake in a $67-billion takeover of technology conglomerate EMC.
Dell currently chairs VMware, and owns some 36% of the firm’s outstanding shares, equivalent to $15 billion based on Friday’s closing price of $95.71, data from Sentieo show.
Any merger would indicate the active market for large technology deals, even with the sharp decline in valuations so far in 2022. Stock market capitalization stood at $40 billion on Friday, 20% lower than the start of the year.
Both VMware and Broadcom have yet to comment on the matter.