Broadcom Offering to buy VMware

It looks like VMware might be in play once again. It’s a gem in the data centre space, and I am not surprised there is interest in acquiring it.

Shares of VMware, a major developer of data center software, on Monday rose by 25% on reports that Broadcom, a major developer of microchips for data centers equipment and other devices, wanted to buy it for $50 billion or more. But investors shouldn’t bet on a deal quickly passing muster with antitrust officials, even though the two companies don’t directly compete.

The greatest challenge with any acquisition is ‘culture fit’. This will be interesting to watch, so stay tuned.