Chipmaker Broadcom in talks to acquire VMware for $60 billion – sources

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By Greg Roumeliotis and Supantha Mukherjee

NEW YORK/STOCKHOLM (Reuters) – Broadcom Inc is in talks to acquire cloud services provider VMware Inc in a $60 billion deal that would further diversify the chipmaker’s business into enterprise software, those familiar with the matter said Persons.

Broadcom is in talks to pay about $140 per share in cash and stock for VMware, the sources said. That’s a 46% premium to Friday’s value of VMware shares.

If negotiations prove successful, a deal could be announced as early as Thursday when VMware is due to report quarterly results, the sources added.

Bloomberg News first reported on the deal talks on Sunday, while the Wall Street Journal first reported on the deal terms on Monday. Broadcom and VMware did not immediately respond to Reuters requests for comment.

VMware shares ended Monday’s trading up 25% at $119.43, while Broadcom shares closed up 3% at $526.36.

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