Cloud company VMware's shares surge 15% after Broadcom takeover talks

Shares in VMware rose 15% in premarket trading on Monday, which would give the company a market value of about $46 billion.

Broadcom Inc. is in talks to acquire VMware Inc., the cloud-computing company backed by billionaire Michael Dell, according to people familiar with the matter, setting up a blockbuster tech deal that would vault the chipmaker into a highly specialized area of software. 

The discussions are ongoing and there’s no guarantee they will lead to a purchase, said the people, who asked not to be identified because the matter isn’t public. VMware currently has a market valuation of about $40 billion. Assuming a typical premium, the potential deal price would be higher, though the terms under consideration couldn’t be learned. 

Shares in VMware