Broadcom outlines what will happen if it gives VMware a bear hug, Digital…


Well, Broadcom tacitly admits that its history of acquisitions and integrations has been marked by some loud beatings, and at least the company acknowledges that it’s made some nasty mistakes in the past. As stated in the press release, “We are approaching the planning phase with an open mind once the transaction process is complete, while learning from our previous acquisitions of CA and Symantec Enterprise.”

And so should they. In July 2018, Broadcom bought software house CA Technologies for nearly $19 billion in cash and acquired Symantec’s enterprise security business for $10.7 billion in November 2019. The acquisitions and subsequent integration of the companies have been fraught with problems, and after CA and Symantec became part of Broadcom, their cost bases were cut by 60% and 70%, respectively.

Regarding VMware, Broadcom has announced that it will increase its annual profitability from $4.7 billion today to $8.5 billion by 2025. That is a…

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