Chipmaker Broadcom in talks to acquire VMware sources


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NEW YORK/STOCKHOLM – Broadcom Inc is in talks to acquire cloud service provider VMware Inc in a deal that could transform the chipmaker into a diversified technology company, people familiar with the matter said.

Negotiations between Broadcom and VMware are ongoing and a deal is not imminent, the sources said. The discussed contract terms are not known.

Broadcom makes a range of chips used in products from cellphones to telecom networks, but a VMware acquisition would give it access to data centers where the latter’s technology is a mainstay for cloud customers.

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“We believe an acquisition of VMware would make strategic sense; consistent with Broadcom’s focus on building an in-depth enterprise infrastructure software strategy,” said Wells Fargo analysts.


Broadcom CEO Hock Tan, a Malaysian-American billionaire, has been a prolific dealmaker since he took charge of a small chipmaker in…

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