Hock Tan, Broadcom''s chief executive, is no stranger to doing business.
Reporthas attempted to buy or purchased major technology players in an ongoing shopping spree over the last nine years Broadcom (AVGO) - Get Broadcom Inc.
Broadcom was shaped as a chip company with almost every tool at its disposable capacity due to its desire for new businesses.
Brocade, a network-gear company, for $5.5 billion, CA, $18.9 billion, component andoptical chip manufacturerCyOptics for $400 million, Emulex for $764 million, chipmaker LSI for $16.6 billion, and Symantec (SYMC) - Get Symantec Corporation Reportfor $10.7 billion.
Apart from that, Avago purchased Broadcom as a business for $337 billion in 2015.
That marriage brought a chipmaking behemoth to the table and sparked a fresh path for competition in the sector.
All of that shopping has come with major benefits.
Those include a higher share price and some insulation from market whipsaws, which have sent some tech firms skidding, but left chipmakers relatively stable.
On the other hand, the urge to merge has also drew the company in hot water.
Several would-be agreements were slashed due to antitrust concerns, and Broadcom has maintained its vision of regulators, who are wary of how wide its offerings are being utilized.
Note that a$103 billion proposal for Qualcomm (QCOM) has been rejected by experts. Contact Qualcomm Inc Reportand has discussions to purchase the SAS Institute.
CEO Tan appears to be on the lookout for the next time.
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VMWare Gets a New (and Eager) Suitor
VMware, Inc. Class A Reportis is in discussions with Broadcom to be acquired, according to reports on May 24.
According to Bloomberg, the two corporations might announce a merger as early as this week. It would be a stock-and-cash agreement, according to people interested in the matter.
The Wall Street Journal said the investment might go up roughly $140 per share, or $60 billion.
According to Bloomberg Intelligence CEO Woo Jin Ho, an acquisition at that price implies a price-to-earning multiple of at least 17 people, which is consistent with recent software agreements.
Does a Deal Make Sense?
A Broadcom/VMWare deal has been in the cards for a while, as market watchers have wondered whether the businesses may be able to compensate the other''s weaknesses.
In a formerly cloud market, Broadcom might be integrated into software, and VMWare might get a sense of security of its$50.3 billion valuation.
According to Bloomberg, investors are increasingly focused on Broadcom''s desire for a more strategic or platform enterprise software acquisition. Especially given the recent decrease in software valuation, Wells Fargo analysts are urging the public to look into the report.
A VMware acquisition would be considered as making strategic sense; in line with Broadcoms'' mission to develop a deepening enterprise infrastructure software strategy.
VMWare may have other suitors in the wings, as the market has shown an enormous interest in massive tech takeovers.
According to Bloomberg''s data, acquisitions of IT companies worldwide increased by 46% this year to $263 billion.