US chipmaker Broadcom is in talks to buy software group VMware, in a takeover that could generate a huge windfall for the technology company’s largest shareholder Michael Dell, according to people briefed about the matter.
A deal, which could be worth more than $50bn, would transform the deal-hungry semiconductor group into a diversified tech company ranging from chips to cloud computing services.
VMware has long been considered one of the cloud computing industry’s most important companies. Its services are used by large corporations to manage private and public cloud networks as well as data centres.
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