Word on the street is that negotiations between Broadcom and VMware are ongoing and a deal is not imminent, the sources said.
The deal is a little odd as it would diversify Broadcom’s business away from semiconductors and into enterprise software, following its $18.9 billion acquisition of CA Technologies and its $10.7 billion purchase of Symantec security division in the last four years.
Broadcom and VMware are not saying anything at the moment. VMware is valued at $40.3 billion.
Michael Dell is VMware’s biggest investor with a 40 per cent stake as a result of Dell having spun out VMWare to its shareholders last year.
Private equity firm Silver Lake, which has previously invested in Broadcom, is VMware’s second largest shareholder with a 10 per cent stake.