Broadcom Acquires VMware In $69B Deal After China Approval

SAN JOSE, CA - JUNE 07: Signage is displayed outside the Broadcom offices on June 7, 2018 in San Jose, California. Broadcom is expected to report second-quarter earnings today after the closing bell. (Photo by Justin Sullivan/Getty Images)
(Photo by Justin Sullivan/Getty Images)

OAN’s James Meyers
8:18 AM – Wednesday, November 22, 2023

The chipmaker company Broadcom has officially acquired VMware for $69 billion. 

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The announcement made on Wednesday comes after China joined the list of other countries that gave the approval to acquire the cloud computing firm company. 

Broadcom’s goal is to establish a stronger connection in the cloud computing market, and with the acquisition it will allow more large corporations to use public cloud access with internal company networks. 

Currently, VMware has close ties with various major cloud company providers such as Google, Amazon and Microsoft. 

Additionally, the deal includes Broadcom paying $61 billion in cash and stock for VMware and will take on $8 billion of its debt, which closes as one of the biggest technology deals ever. 

The announcement also comes after Microsoft recently acquired video game-maker Activision Blizzard for $69 billion. 

For the deal to come to fruition it took Broadcom 18 months to get all the regulatory approvals, which was just days before the merger agreement was due to expire. 

Broadcom commented on the deal saying it received approval from Australia, Brazil, Canada, China, the European Union, Israel, Japan, South Africa, South Korea, Taiwan, the United Kingdom, and “foreign investment control clearance in all necessary jurisdictions.”

“There is no legal impediment to closing under U.S. merger regulations,” it said.

Broadcom’s CEO, Hock Tan, described the plan to acquire VMware as a “very unique opportunity to take our company and its business to the next level.”

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