Semiconductor company Broadcom (Nasdaq: AVGO) is in discussions to acquire VMware (NYSE: VMW) through a cash-and-stock transaction, The Wall Street Journal reported Sunday.
News of a potential deal comes as Broadcom, which has a market value of $222 billion, seeks to expand its footprint in the corporate software market.
In July 2021, reports emerged that Broadcom was in talks to buy SAS Institute but negotiations ended after the software company’s founders changed their minds over a potential sale.
In November 2021, Dell Technologies (NYSE: DELL) finished spinning off 81 percent of its equity ownership interest in VMware as part of efforts to establish two independent companies that will continue to co-develop critical platforms under a commercial agreement.
VMware, which has a strong presence in the hybrid cloud market, has a market valuation of $40 billion.
