Broadcom Acquires VMware for $69 Billion

Despite taking a year and a half, Broadcom (AVGO) has finally acquired rival software firm VMware (VMW). The closing of the $69 billion deal, first announced in May 2022, had been delayed three times by regulators concerned that the merger would reduce competition. The $69 billion acquisition was completed with regulatory approval from China, the last major market. There were concerns that the deal would not materialise due to tensions between the US and China over President Joe Biden's new export sanctions on technology products. These tensions eased somewhat after President Biden met with Chinese leader Xi Jinping at an economic co-operation conference in California last week.

Also See: Matsmart-Motatos Receives €40 Million Investment

Broadcom

Broadcom CEO Hock Tan said the merger will "enable global enterprises to adopt private and hybrid cloud environments, making them more secure and resilient". Following the completion of the transaction, VMware shares also stopped trading on the New York Stock Exchange (NYSE). Broadcom shares fell less than 1 per cent on Wednesday. They also reached an all-time high on Monday.

As ever-increasing amounts of data move across the global network, the need for commonality and interoperability grows. Broadcom has a deep and ongoing relationship with industry standards associations and specifications. The company holds leadership positions in many industry standards organisations, alliances, consortia, customer partnership groups and trade groups. Broadcom helps shape industry standards to enable even higher performance and capabilities while ensuring interoperability.