back to article Broadcom in talks to buy VMware: multiple reports

Broadcom is in early talks to buy VMware, according to The New York Times, Bloomberg, and Reuters. VMware is not commenting on the matter. This one is interesting, because the three sources we've linked to above all say they've got the news from "a person familiar with the matter." All say the deal is nowhere near done, a …

  1. Porco Rosso

    Intel should buy it

    I always found that Dell inc & VMware are satellites/creation of Intel.

    Their (Dell-VMware) products, future visions are in my opinion articulated around Intel moves. (there is a reason VMware is late in the ARM world). I also think their culture are quite similar. Booth companies Intel - VMware could boost each other strength. Maybe the regulator(s) will say too much of monopoly risks ... but a Swiss vision and better integration of the different products / stacks could be a win win for the end customers small and big against the 3 massive cloud giants and Apple.

  2. sw guy

    Oh no

    My feeling when having work relationship with Broadcom ? First answer to a prospect: sending a NDA.

    Another company send me e-mail address where I could ask question.

    Guess which company I recommended.

    As I never worked with VMware, I can say nothing for them.

    (my previously VMware employees colleagues did not look to keep a bad memory of their experience, though)

  3. Charlie Clark Silver badge

    Share price

    VMware or Broadcom could have let the news out, to test its impact on share prices.

    The SEC would want to have a word if they did this. Any pubically traded company has to follow the rules about disclosing anything that might affect the share price and any kind of speculation is strictly off limits, or leaves them open to class action suits…

  4. Anonymous Coward
    Anonymous Coward

    When Broadcom goes shopping

    Hey Reg, check your article history. This is the same playbook they ran with Symantec:

    - 03 July 2019, Tease the rumor at $15.5B

    - 15 July 2019, Deal off

    - 09 August 2019, Deal inked at $10.7B

    Watch for the deal to close in time for the start of Broadcom's financial year, November 1st.

  5. Platinum blond(e)

    Avago's playbook:grab and squeeze

    Broadcom has now a pretty long track record in both SW and HW acquisitions. Always plays the same: reduce staff, pressure clients with exclusive contracts, raise prices; all to hit their target margins. Repeat with next acquisition as the prior carcass is squeezed dry.

    This is good for shareholders and senior execs obviously. Bad for everyone else. Even the remaining staff: I cant imagine those RSUs can somehow pay for a decent work/life balance.

    VMWare's many customers should/will raise strong concerns and the ruling bodies worldwide would likely give such an acquisition the electron microscope treatment as a result.

    This requires a new popcorn machine.

  6. IGnatius T Foobar !

    Not the first time VMware has been owned

    EMC used to own VMware. Dell picked it up as part of the EMC acquisition and then later spun it off. That's why Michael Dell owns so much of it.

    VMware is a key asset because they basically ARE the market for the non-Amazon, non-Microsoft cloud world. And that's kind of important.

  7. sturdy1234

    After Avago Bought LSi

    After Avago bought LSI, it was slice and dice the day after the deal closed; sold off the wireless business to Intel, sold off Egeno to NetApp, sold off the SSD division to Seagate, sold off the patent portfolio to an investment group, laid off the rest of us and kept only the SAS chip, switch and controller business in Colorado. Any idiot can layoff 100's of folks. Getting acquired by Broadcom is bad news big time! The Avago CEO, now the same guy running Broadcom explicitly laid out his plan to slice and dice LSI after the deal was closed in an all hands meeting with us. He stated his intent was to dominate the SAS chip market and raise the margins and eliminate other businesses with low margins. Mike O’Dell better get his cash out quickly as Broadcom will wreck VMware imho

    1. Piro Silver badge

      Re: After Avago Bought LSi

      Oh no, VMware is too important to be treated like that.

      The thing is, VMware's business will simply dry up and die off if they neglect R&D and QA. Their products require constant development and also very high quality code, as they are utterly critical to infrastructure.

      If they make repeat mistakes, people will simply wonder what they were paying for, and go *shudder* Hyper-V.

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