Broadcom Is Buying VMWare For $61 Billion

Broadcom Is Buying VMWare For $61 Billion

One of the biggest ever tech acquisitions is about to go down, and it involves two companies you may have never even heard of. Microchip heavyweight Broadcom is set to acquire cloud computing company VMWare, in a deal worth $61 billion in cash and stock. To put the size of the acquisition in perspective, only two previous takeovers in the tech industry top this deal: Dell's $67 billion buy-out of data storage company, EMC, in 2015 and Microsoft's still-in-progress takeover of Activision Blizzard for $68. 7 billion. So who are these companies, what do they do and why is this deal so big? Broadcom is making a big baller move here, but how does a company that flies under the radar have the weight to make a deal of this size? Well, Broadcom may not have their logo on the back of your iPhone or Android, but they design and manufacture the semiconductor (or chip) that is the brains of these powerful devices. Their chips can also be found in cars, gaming consoles, computers and medical devices. It's easy to see how the chip industry is big business. Broadcom's business expands even further than this, into areas such as wireless