According to a report by Bloomberg, computer chip maker Broadcom Inc. is in talks to buy virtualization software giant VMware Inc.
The report, citing anonymous sources familiar with the matter, said negotiations are ongoing and an agreement is not imminent. The Wall Street Journal, however, reported talks had “picked up steam in the past few days.”
The terms of the proposed deal were not disclosed. VMware’s market cap is approximately $40 billion and Broadcom’s is approximately $222 billion. VMware reports the results later this week, while Broadcom will report the following week.
However, Broadcom has reportedly been trying to expand its business beyond semiconductors for some time. In fact, thanks to its $19 billion acquisition of CA Technologies Inc. in 2018 and its $10.7 billion acquisition of Symantec Corp’s security business, the company has. a year later already gained a foothold in the enterprise software business.
With these acquisitions, Broadcom Chief Executive Hock Tan…