One of biggest (and dullest) big tech acquisitions ever may be blocked by the European Commission:
The European Union plans to carry out a full-scale investigation of Broadcom's $61 billion bid to buy VMware. Following a preliminary probe, the European Commission, the bloc's executive branch, announced on Tuesday it believes the proposed acquisition may allow Broadcom to "restrict competition" in the markets for network interface cards, fiber channel host-bus adapters and storage adapters.
Specifically, the EU is concerned Broadcom may harm competition in those markets by limiting interoperability between rival hardware and VMware's server virtualization software. [...]
The Commission will also investigate whether Broadcom could hinder rivals like NVIDIA and Intel from developing their own smart network interface cards. Here it points to VMWare's involvement in Project Monterey, an industry-wide effort the company announced in 2020. "Broadcom may decrease VMware's involvement in Project Monterey to protect its own NICs revenues," the Commission notes. "This could hamper innovation to the detriment of customers." Another concern is that Broadcom could start bundling VMware's virtualization software with its own mainframe and security tools, a move that would reduce choice in the market.
Previously:
Broadcom to Acquire VMware in Massive $61B Deal
Broadcom in Talks to Buy Cloud Computing Firm VMWare
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Broadcom In Talks To Buy Cloud Computing Firm VMWare - Benzinga:
Broadcom Inc is reportedly in discussions to take over cloud computing company VMWare Inc.
VMWare denied commenting, while a Broadcom representative wasn't available immediately, according to Bloomberg.
Broadcom has been on the lookout for big software acquisition, noted Bloomberg. In 2018, the Hock Tan-led company announced the acquisition of infrastructure technology company CA Technologies for $18.9 billion in cash. The following year it purchased Symantec Corporation's enterprise security business.
Michael Dell, CEO of Dell Technologies Inc, along with Silver Lake are top investors in VMWare, according to Bloomberg.
Also reported at:
- Broadcom to buy VMware 'on Thursday for $60 billion'
- Broadcom's Pursuit of VMware Takes Page From Michael Dell
- Broadcom in Talks to Acquire VMware, the Cloud Computing Company
Broadcom to acquire VMware in massive $61B deal – TechCrunch:
Sometimes when there is smoke, there is actually fire. Such was the case with the rumors of Broadcom's interest in VMware this past weekend. It turns out that fire was burning hot, and today, Broadcom announced it is acquiring VMware in a massive $61 billion deal.
The deal is a combination of cash and stock, with Broadcom assuming $8 billion in VMware debt.
With VMware, Broadcom gets more than the core virtualization, which the company was built on. It also gets other pieces it acquired along the way to diversify, like Heptio for containerization, and Pivotal, which helps provide support services for companies transitioning to modern technology. At the same time it bought Pivotal, it also acquired security company Carbon Black.
That touches upon a lot of technology, but it begs the question, where does it all fit with Broadcom (which has spent a fair amount of money in recent years buying up a couple of key software pieces prior to today's announcement)?
[...] VMware CEO Raghu Raghuram put the typical positive spin on the deal about the two companies being better together. "Combining our assets and talented team with Broadcom's existing enterprise software portfolio, all housed under the VMware brand, creates a remarkable enterprise software player," he said in a statement, referring to those two other pieces Broadcom already owns.
Also reported at:
Previously: Broadcom in Talks to Buy Cloud Computing Firm VMWare
