Broadcom enters talks to acquire VMware - reports

This could be one of the biggest deals to affect the channel since Dell acquired EMC in 2016 for $67bn

Chipmaker giant Broadcom is looking to acquire VMware, according to reports.

Talks are currently ongoing about the acquisition although no deal has yet been finalised, Bloomberg reported on Sunday evening.

While terms have not been disclosed, the publication reports the potential deal price could be higher than VMware's current market value of around $40bn.

VMware produced revenues of $12.85bn in its last financial year ending 28 January 2022, up nine per cent year on year. Its subscrition and SaaS-based revenue grew by 24 per cent annually to $3.20bn.

If a deal is reached, it could be one of the biggest acquisitions to affect the channel since Dell acquired EMC in 2016 for $67bn.

Broadcom and VMware did not provide comment to Bloomberg over the potential acquisition.

The move comes after Dell completed the spin-off of its 81 per cent share in VMware last November.

Michael Dell continued as chairman of the VMware board and is also a significant shareholder within the company.

If Broadcom were to acquire VMware, it would see the company broaden its enterprise software business following its acquisitions of CA Technologies and Symantec in 2018 and 2019 respectively.

Broadcom's $10.7bn (£8.3bn) acquisition of Symantec sparked some concern from the channel.

At the time, partners expressed fears over rumours that Broadcom planned to take Symantec's top 1,500 customers direct, while disties told sister publication Channel Partner Insight that they were concerned over Broadcom's silence over its channel strategy after buying Symantec.