Broadcom plans to acquire VMware for a whopping $61 billion

Tudor Cibean

Posts: 97   +6
Staff
The big picture: If the transaction does go through, it would be one of the biggest tech deals ever, just behind Microsoft's pending acquisition of Activision Blizzard for $69 billion and Dell's EMC buyout for $67 billion (a deal that included VMware).

Today, Broadcom announced plans to buy VMware in a cash-and-stock transaction valued at approximately $61 billion. The deal would also result in Broadcom assuming VMware's $8 billion in debt.

Broadcom is mainly known for designing and manufacturing a wide range of semiconductor products, including Wi-Fi, Bluetooth, and GPS chips used in many smartphones and routers.

VMware is a cloud computing and virtualization technology company. The firm launched in 1998 and was acquired by EMC in 2004. It became part of Dell when the latter bought EMC in 2016 before spinning off to become a standalone company again last year.

If the deal does go through, Broadcom plans to rebrand its Broadcom Software Group to VMware and incorporate its existing infrastructure and security software portfolio as part of VMware.

Michael Dell, who personally owns more than 40 percent of outstanding Dell stock, and global private equity firm Silver Lake, which owns another 10 percent, have both given their approval to the deal.

The acquisition is expected to close in Broadcom's fiscal year 2023, which starts in November 2022.

It's worth mentioning that Broadcom also tried to acquire fellow chipmaker Qualcomm a few years ago for over $100 billion. That deal fell through when former president Donald Trump blocked the acquisition, citing national security concerns.

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NeoMorpheus

Posts: 1,147   +2,313
I wonder how long they can continue being in the market, given that Windows and Linux already have free built in hypervisor.

I know, they make their money on corporate, but the same applies.
 

Soulburn74

Posts: 109   +52
I wonder how long they can continue being in the market, given that Windows and Linux already have free built in hypervisor.

I know, they make their money on corporate, but the same applies.
To get Hyper V configured to match similar High-Availability, and have their version of 'v-motion' capabilities, is definitely not part of the free portion that is included in the OS. Add to that Microsoft's switch over to Per Core pricing on Windows Server OS, the pricing is much closer than one would initially think to build out a virtualized infrastructure that is similar to what vmware offers.. vmware is the Industry Standard hypervisor, it will take a lot for that to change anytime soon. Also on top of that: what The Dreams, said.
 

NeoMorpheus

Posts: 1,147   +2,313
For the obvious vmware certified engineers above, speaking in absolutes doesnt means that all companies have the same needs and usages.

And observing how many times the company has traded hands, something is not kosher.
 
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Just Some Dude

Posts: 9   +1
No need to buy vmware when kvm, docker and kubernetes are free
Those technologies are for short life software, ESXi from VMware, like Hyper-V from Microsoft are for long term efficient use of hardware. You wouldn’t run an enterprise SQL service on kvm, docker and kubernetes.
 

zamroni111

Posts: 338   +198
Those technologies are for short life software, ESXi from VMware, like Hyper-V from Microsoft are for long term efficient use of hardware. You wouldn’t run an enterprise SQL service on kvm, docker and kubernetes.
Omg! Google, Facebook and Twitter are deeply wrong for not using esxi or hyper v
 

Uncle Al

Posts: 8,776   +7,700
I actually expect to see a lot more of these this year, into the next. There's lots of "new money" out there looking for investors .....
 

waclark

Posts: 352   +240
Those technologies are for short life software, ESXi from VMware, like Hyper-V from Microsoft are for long term efficient use of hardware. You wouldn’t run an enterprise SQL service on kvm, docker and kubernetes.
Why not? I work with people every day using Docker and Kubernetes. Not necessarily for SQL but for enterprise deployments. Furthermore, as people begin to move to cloud SQL and other DBs are being targeted for PasS deployments, so no one cares about the underlying virtualization, except for the PasS provider.
 

zamroni111

Posts: 338   +198
Unlike the trash hypervisor that windows provides, VMWare is halfway decent.
I use hyper v in laptop.
Being type 1 hyper visor, it's definitely better than type 2 like vmware workstation.
Simply ensure that the virtual machine has hyper v drivers installed.
Booting is faster than vmware workstation, especially in gen 2/uefi mode.
The virtual disk differencing also helps to reduce disk usage.