Broadcom Inc (NASDAQ: NASDAQ:AVGO) shares are trading lower Monday morning following several reports the company is in talks to acquire Vmware Inc (NYSE: VMW).
According to multiple reports, citing people familiar with the matter, Broadcom has expressed interest in acquiring Vmware for up to $50 billion. However, deal terms have not been confirmed as negotiations between Broadcom and VMware are reportedly ongoing and a deal is not expected to be imminent.
Broadcom has a highly diverse product portfolio across an array of end markets. A Vmware acquisition could give the company access to data centers which would align with its previously stated goal of becoming an enterprise infrastructure provider.
Vmware became a stand-alone entity after a spin-off from Dell Technologies Inc (NYSE: DELL) last year. The company is an industry leader in virtualizing IT infrastructure. Vmware stock traded down near five-year lows last week.
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AVGO Price Action: Broadcom shares have traded between $445.33 and $677.76 over a 52-week period.
The stock was down 4.88% at $516.68 at press time.
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