- Broadcom resolved a lawsuit with Fidelity Investments over access to VMware software services, reaching a settlement that keeps Fidelity’s access intact.
- The dispute followed Broadcom’s acquisition of VMware and changes to VMware product offerings and licensing terms.
- The agreement avoids potential service disruption for a large financial client and sheds light on how Broadcom is handling enterprise software relationships after the deal.
For investors watching NasdaqGS:AVGO, this settlement offers a clearer view of how Broadcom is managing integration risk around VMware. The shares recently closed at $320.05, with a 1 year return of 32.0%, and a 5 year gain of about 7x, despite a 7.9% decline year to date and pullbacks of 9.0% over 7 days and 9.1% over 30 days. In that context, keeping a key customer like Fidelity on board is an important operational outcome rather than a headline about earnings or price targets.
This case may also indicate how Broadcom could handle other…
