The proposed acquisition of virtualization giant VMware that chipmaker Broadcom announced last month sent shockwaves through the global IT channel community and the tech sector at large.
Response has been mixed so far, citing Broadcom’s past acquisitions of Symantec and CA Technologies, with ex-VMware CEO Pat Gelsinger, VMware contributor and Gartner analyst Michael Warrilow having their say.
Executives from Broadcom and VMware have given assurances that the virtualization company will not suffer the same fate as Symantec and CA, with the former saying it is now “ready to embrace the channel” and the latter assuring VMware would be at the forefront of its software division.
The $61 billion deal is a 50-50 cash stock split that values VMware stock at a 44 percent premium to the company’s May 20 closing price of $95.71. VMware would then, along with Symantec and CA, join the Broadcom Software Group upon completion, and the group will also…