Business Standard

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.

Photo: Bloomberg
Premium

Photo: Bloomberg

Liana Baker and Ed Hammond | Bloomberg
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

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: May 23 2022 | 3:54 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com