November 25, 2023 at 09:18PM
Broadcom, a computer chip and software maker, has cleared regulatory hurdles to complete its $69 billion acquisition of cloud technology company VMware. The deal, one of the biggest technology acquisitions ever, includes $61 billion in cash and stock and the assumption of $8 billion in debt. The acquisition comes after Microsoft’s $69 billion acquisition of Activision Blizzard. Broadcom’s plan to establish a stronger foothold in the cloud computing market was met with approvals from various countries and regulatory bodies.
Meeting Takeaways:
– Broadcom has successfully cleared all regulatory hurdles and plans to complete its $69 billion acquisition of VMware on Wednesday.
– The acquisition involves Broadcom paying $61 billion in cash and stock for VMware and taking on $8 billion of its debt.
– Broadcom’s acquisition plan received approval from various regulatory bodies, including China’s State Administration of Market Regulation and Britain’s competition regulator.
– The acquisition allows Broadcom to establish a stronger foothold in the cloud computing market, leveraging VMware’s technology.
– The deal aligns with Broadcom CEO Hock Tan’s strategy of pursuing big acquisitions to expand the company’s business.
– Other major tech acquisitions, such as Microsoft’s acquisition of Activision Blizzard, are also taking place.
– These acquisitions are occurring amid global supply chain turmoil, regional conflicts, and rising prices, which may impact business and consumer activity.
– The technology companies’ share price decline during the pandemic has made acquisitions more affordable and contributed to the increased activity in this space.