Broadcom wants to buy VMware, financial news agency Bloomberg and news agency Reuters report. A deal is not yet imminent, but talks are already underway. Broadcom has said it is looking for acquisitions.
The talks are ongoing claims Reuters. With the purchase, Broadcom would like to expand its domain from hardware to software. Broadcom mainly makes chips, while VMware is known for its virtualization software. Broadcom was supposed to have taken over SAS last year, but that deal fell through, says Bloomberg.
Broadcom CEO Hock Tan already said during a call with investors in March that the company is on a takeover path. “We are still looking for acquisitions. We are selective in which companies we want to buy, but we are still in the market looking for things to buy, and we have the money to do that.”
There are no further details about the acquisition. Bloomberg reports that VMware is currently worth about $40 billion. With a higher price that the buyer usually pays for an acquisition, the acquisition amount may therefore be even higher.