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Broadcom finalizes VMware acquisition, restructures leadership

EditorPollock Mondal
Published 23/11/2023, 10:28
© Reuters.

Broadcom (NASDAQ:AVGO) Inc. has successfully completed its acquisition of VMware (NYSE:US90275F1966=UBSS) Inc., a deal valued at $61 billion plus the assumption of debt. This strategic move has led to a significant reorganization within VMware, resulting in the formation of four distinct divisions and shifts in executive roles.

Following the conclusion of this major transaction, the company has announced that VMware will now operate under four specialized divisions. The VMware Cloud Foundation will be led by Krish Prasad, focusing on the company's core cloud infrastructure and services. Purnima Padmanabhan will head Tanju, a division dedicated to management products for computing, storage, and network resources. Sanjay Uppal is set to manage the software-defined edge division, which deals with edge computing solutions. Lastly, Umesh Mahajan will direct the application networking and security division, overseeing the NSX software-defined network virtualization.

In a notable leadership change, former VMware CEO Raghu Raghuram has transitioned to serve as a technical advisor to Broadcom CEO Hock Tan. Additionally, Ricky Cooper has taken on the role of Vice President of OEM sales, with responsibilities including managing partner incentives across the newly established divisions.

Today, Raghuram revealed his plans to take a sabbatical before pursuing a new venture. However, he will maintain his advisory role to Tan during this period. Cynthia Loyd steps into the role of Vice President of commercial partner sales amid concerns from channel partners about potential uncertainties regarding pricing and support following the acquisition.

The completion of this merger marks a significant milestone for Broadcom, having overcome international regulatory hurdles. Notably, obtaining late consent from China was crucial, dispelling Wall Street analysts' skepticism about whether the deal could proceed without it. Despite this concern, Broadcom's stock price experienced volatility surrounding the announcement of the merger's closure, dipping to $972 after previously peaking at $999.50 prior to the announcement.

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