Broadcom Announces Plan To Acquire VMware For $61 Billion USD
Written by Michael Larabel in Virtualization on 26 May 2022 at 08:30 AM EDT. 18 Comments
VIRTUALIZATION --
Following recent rumors of Broadcom pursuing a VMware acquisition, Broadcom announced today their intent to acquire the virtualization company for $61 billion (USD).

As part of Broadcom acquiring VMware they are aiming to "build the world's leading infrastructure technology company." Broadcom's Software Group would reband and operate as VMware as part of the acquisition.
SAN JOSE and PALO ALTO, Calif., May 26, 2022 /PRNewswire/ -- Broadcom Inc. (NASDAQ: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, and VMware, Inc. (NYSE: VMW), a leading innovator in enterprise software, today announced an agreement under which Broadcom will acquire all of the outstanding shares of VMware in a cash-and-stock transaction that values VMware at approximately $61 billion, based on the closing price of Broadcom common stock on May 25, 2022. In addition, Broadcom will assume $8 billion of VMware net debt.

Broadcom hopes the acquisition to close during their 2023 fiscal year. More details via Broadcom's press release.


This won't directly impact many of the more enthusiast-minded Phoronix readers thanks to the already great open-source virtualization offerings out there. One indirect item to mention is VMware currently employing a number of Mesa / Linux graphics developers since VMware's 2008 acquisition of Tungsten Graphics. If this was years ago it would be a concern for Mesa if Broadcom shifts direction/resources but in recent years the ex-Tungsten/VMware Mesa developers have been less involved in spearheading upstream Mesa with the likes of Red Hat, Intel, AMD, and Valve continuing to invest significantly into Mesa. VMware does continue working on Mesa and the Linux graphics stack with a focus on their SVGA virtual graphics adapter for 3D guest acceleration within VMs.
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