Broadcom finalized a deal with VMware that acquires the cloud computing software provider into the ownership of Broadcom for $69 billion. This landmark deal, completed in 2022, saw one of the world's leading infrastructure technology companies significantly expand its portfolio.
The road to this acquisition was not without its fair share of complications. According to a Reuters article, the deal between Broadcom and VMware was one of the biggest global deals when it was announced in May 2022. Despite the largeness of this deal, it came against much scrutiny globally, which delayed the ending date for it three times. The U.S. held many tensions with the exporting of chips, causing many investors in the company to doubt the company's ability to close the deal before the deadline of November 26. However, China's regulatory approval was granted on Tuesday, ending the extended deal.
To understand why this deal holds significant importance for Broadcom, one must first understand its core business model and area of expertise. According to its online About Us page, Broadcom Inc. is a corporation, headquartered in San Jose, California, that leads in infrastructure technology. The company focuses on products that "connect our world", leading globally in products for some of the largest companies worldwide. Specifically, Broadcom develops semiconductor and infrastructure software solutions that serve mainly to advance businesses and lead them to success.
The acquisition promises new horizons not only for Broadcom but also for its customers around the globe as revealed by their CEO Hock Tan. In a CEO insight from the Broadcom website, CEO Hock Tan says in light of the successful acquisition of VMware,"While an important moment for Broadcom,it’s also an exciting milestone for our customers around the world." His insight into this deal shows the importance of this integration of VMware into Broadcom for IT infrastructure systems and its challenges and the overall technology market. Tan likewise commented, "And as I said when we first announced the acquisition, we can now come together and have the scale to help global enterprises address their complex IT infrastructure challenges by enabling private and hybrid cloud environments and helping them deploy an "apps anywhere" strategy. Our goal is to help customers optimize their private, hybrid and multi-cloud environments, allowing them to run applications and services anywhere."