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Broadcom to acquire VMware for $61B

reuters.com

11–20 of 430 posts

Re: Broadcom to acquire VMware for $61B

#11

"to speed up its expansion into the enterprise software business." Why does a chipmaker want/need to expand into enterprise software? Shouldn't they be expanding to making different chips?

Because they want something that’s not affected by the chip shortage.

Re: Broadcom to acquire VMware for $61B

#12
post #4

Oh no https://www.reddit.com/r/cybersecurity/comments/uxucz4/if_vm...

Yep, that's Broadcom's business model ... buy a business (VMWare), ignore its smaller customers, upsell the Fortune 500 on the product (VMWare) to push out competing solutions, and keep the line items on those Fortune 500 bills growing. It's worked for them I guess. I left a Broadcom acquisition before the takeover.

Re: Broadcom to acquire VMware for $61B

#14

"to speed up its expansion into the enterprise software business." Why does a chipmaker want/need to expand into enterprise software? Shouldn't they be expanding to making different chips?

Because corporate capitalism and investors expect ever higher returns. So a company that does good at what it does needs to look at new revenue sources to please investors which after a while just does mediocre at everything.

Re: Broadcom to acquire VMware for $61B

#18
post #12
post #4

Oh no https://www.reddit.com/r/cybersecurity/comments/uxucz4/if_vm...

Yep, that's Broadcom's business model ... buy a business (VMWare), ignore its smaller customers, upsell the Fortune 500 on the product (VMWare) to push out competing solutions, and keep the line items on those Fortune 500 bills growing. It's worked for them I guess. I left a Broadcom acquisition before the takeover.

[deleted]

Re: Broadcom to acquire VMware for $61B

#20

Michael Dell will get $24bn! from this acquisition...It's fascinating how he turned around a struggling PC company (Dell Inc) into a financial engineering machine that made him tens of billions. https://www.forbes.com/sites/antoinegara/2021/04/18/how-wall...

[deleted]
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