Chip maker Broadcom ready to buy cloud computing leader VMware for $50 billion

According to the Financial Times, U.S. chip maker Broadcom is in talks to buy software developer VMware.

The agreement will turn the chip maker into a diversified technology company operating in various fields: from chips to cloud computing.

As the Financial Times notes, the deal will also benefit billionaire Michael Dell financially. His company, Dell, acquired VMware in 2016 as part of a $67 billion takeover agreement with technology conglomerate EMC. Michael Dell now owns about 36% of VMware’s outstanding shares, which were worth about $15 billion at the close of trading on May 20.

VMware is considered one of the most important companies in the cloud computing industry. The company’s services are used by large corporations to manage private and public cloud networks as well as data centers. However, the company’s stock has collapsed badly in recent years, making it a takeover target.

/Source: N-shore Of Long Island/