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Investing.com — Shares of VMware, Inc. (NYSE:VMW) are up 19% in early Monday trading after multiple reports stated semiconductor giant Broadcom Inc. (NASDAQ:AVGO) is in talks to acquire the company.
Bloomberg first reported the news, citing a person familiar with the matter. They stated that a deal is not yet final.
Cloud computing and virtualization technology company VMware was spun off from Dell Technologies (NYSE:DELL) in November, with the company saying the spin-off provided it with “increased freedom to execute its multi-cloud strategy, a simplified capital structure, and governance model, and additional operational and financial flexibility.”
Broadcom has made a number of acquisitions under Chief Executive Officer Hock Tan, building a significantly diversified semiconductor chip company.
Bloomberg stated that software has been a key focus for Broadcom in recent years, with the company acquiring CA Technologies in 2018 and attempting to buy semiconductor software firm Qualcomm (NASDAQ:QCOM) in 2018 before President Trump blocked the deal.
