Broadcom, a semiconductor chip company, is infamous among desktop Linux users for the incompatibility issues with its wireless adapter/card and drivers.
And, it is now planning to get into the cloud computing market by acquiring one of the biggest players in the industry, i.e., VMware.
VMware is not an open-source company, but it offers some open-source tools and Linux support for its virtualization software.
While we are aware of the market situation (spoiler: it’s not good), it looks like deals like this, and Elon’s Twitter acquisition, still have their chances.
In this case, The Wall Street Journal reports that Broadcom and VMware can potentially announce this acquisition later this week on Thursday.
Broadcom to Enter the Cloud Computing Market
Broadcom should be a familiar name to Linux users when we talk about wireless network chips and their drivers.
And, with the $60 billion deal for VMware, they could expand their take on the industry through VMware’s reach in the cloud computing sector.
Of course, it should be noted that Dell’s founder (Michael Dell) has a stake of more than 50% in VMware. Overall, Dell Technologies has an 81% stake in VMware.
So, their decision also influences the talk about the acquisition by Broadcom.
Hence, it is safe to say that the deal may or may not go through if the discussions fall apart.
And, for the payment to succeed, the report also mentions that Broadcom plans to take help of banks for a $40 billion debt package.
As per the report, if the deal proceeds, this should be massive news for the cloud-computing corporate software market and the hardware industry.
Considering that the report mentions the final price is still up for discussion, the $60 billion value can change (but something around it).
Wrapping Up
You can keep an eye on VMware’s shares and Broadcom Inc if you are someone who is interested in getting involved in the market.
What do you think about Broadcom acquiring VMware? Do you think it’s going to go through with Dell involved with a major stake in the company? Feel free to share your thoughts in the comments below.
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