Tag: Broadcom

KKR in £3 billion bid for VMware’s EUC arm

Posted on February 27, 2024 by - News

Private equity giant KKR is set to snap up VMware’s end-user computing (EUC) division for a whopping £3 billion.

The EUC unit, worth around £790 million, is being sold off by Broadcom after it splashed out £54.5 billion on VMware last year.

KKR already owns Alludo, a software firm that includes Parallels, VMware’s EUC products rival.

The feeling in the Channel is that if KKR is successful, it could be suitable for the industry. KKR would be a good guardian of the technology and the business. This could create a new EUC powerhouse that would benefit the VDI industry.

The deal starkly contrasts Vista Equity Partners’ £13 billion takeover of VDI software maker Citrix in 2022. KKR would be getting a good deal for a £790 million business with a competitive range of technology for delivering virtualised desktops and applications and managing a wide variety of devices.

 

Broadcom dumps VMware partners.

Posted on January 9, 2024 by - News

Broadcom has taken 2,000 of VMware’s best customers in a direct-only sales model drive.

It also told partners they would reject any deal they tried registering for a strategic account.

“If you send new opportunity registrations for strategic customer accounts, they will be turned down,” Broadcom told shocked VMware partners.

If a VMware partner’s deal with a strategic account is waiting, it “will be turned down,” Broadcom wrote.

VMware partners dumped into cold and snow

Posted on January 2, 2024 by - News

Broadcom dropped a bombshell on its VMware partners, telling them they are all sacked and must reapply for their jobs.

The tech giant, which bought VMware for a whopping $61 billion last year, is axing all of its partner agreements with VMware resellers and service providers.

Broadcom will only let a select few join its new invite-only partner programme, which it claims will offer more profits and perks.

Broadcom concludes VMware deal

Posted on November 24, 2023 by - News

After securing regulatory approval in China, Broadcom has finally concluded its $69 billion acquisition of cloud-computing company VMware.

The massive deal was announced in May 2022 and is part of CEO Hock Tan’s cunning plan to enhance Broadcom’s software business.

It was not plain sailing as the acquisition encountered significant regulatory hurdles worldwide, leading to three postponements of the closing date. The last was China’s regulatory green light, which has been signed off despite the controversy over US-China chip restrictions.

The European Commission approved after Broadcom proposed remedies to address issues related to rival Marvell Technology. The UK’s Competition and Markets Authority approved following a thorough investigation.

Broadcom VMware deal has big trouble in China

Posted on October 25, 2023 by - News

Broadcom wants to close its $61bn deal for VMware in a couple of weeks, but the deal is in peril with Chinese government regulators.

Three people told the Financial Times that Beijing is threatening to block the merger, even after it has cleared regulators around the world, in retaliation for new US trade rules that prevent China from receiving advanced chips from Nvidia and Micron.

The US this week announced tougher measures to limit China’s access to high-end chipsets that could fuel breakthroughs in AI and sophisticated technology for its military. The US restrictions hit China, Russia and Iran and blacklisted a Chinese chip designer.

Forrester principal analyst Tracy Woo said it was unlikely China would follow through on its threats to block the deal and was more likely just trying to rain on Broadcom’s parade.

Major layoffs coming at VMware

Posted on August 8, 2023 by - News

Broadcom is to make major layoffs at VMware after its $61 billion acquisition closes

According to Business Insider, the Broadcom cuts are expected to focus on non-engineering roles.

It is speculated that layoffs could come as early as the end of this month after both companies publish their latest earnings results.

The UK regulator approved the deal last month after the merger was given the green light in Europe.

A VMware spokesperson said that while the company expected Broadcom’s acquisition of VMware to close within Broadcom’s fiscal year 2023, integration planning is not complete, and any rumors about post-acquisition plans are both speculative and premature.”

VMware had about 38,300 employees in February, while Broadcom had roughly 20,000 staffers in October, according to Securities and Exchange Commission filings.

EC approves Broadcom’s VMware takeover

Posted on July 17, 2023 by - News

Canalys Forum EuropeThe European Commission (EC) has formally approved Broadcom’s $61 billion bid for virtualisation software giant VMware, with the caveat that Broadcom fulfills certain ongoing commitments around access and interoperability.

The deal, which is one of the biggest tech acquisitions of all time, was the subject of regulatory scrutiny when it was announced in May last year. Europe revealed plans for an in-depth probe in December citing competition concerns, while the UK followed suit in March.

European Commission concerned about Broadcom’s VMware merger

Posted on April 17, 2023 by - News

The European Commission is worried Broadcom’s proposed $61 billion merger with VMware will be anti-competitive.

For those who came in late, the Commission’s watchdog started snuffling around the deal at the end of last year to assess the impact the acquisition may have on competition in the market for the supply of NICs, FC HBAs and storage adapters. Now, the Commission says it has some “reservations.”

“As a result of this in-depth investigation, the Commission is concerned that Broadcom may restrict competition in the global markets for the supply of FC HBAs and storage adapters by foreclosing competitors’ hardware by delaying or degrading their access to VMware’s server virtualisation software,” the watchdog said in a statement.

British watchdog snuffles around Broadcom’s VMware deal

Posted on March 23, 2023 by - News

US chipmaker Broadcom’s acquisition of VMware could make servers more expensive, a British anti-trust watchdog has barked.

Britain’s Competition and Markets Authority (CMA) said it is refering the $61 billion deal to an in-depth inquiry unless its concerns were addressed.

For those who came in late, Broadcom agreed to buy the cloud computing and virtualisation company last year to diversify into enterprise software.

But the CMA is not having it saying that  the deal could dampen innovation and drive up the cost of computer parts and software for servers.

CMA Executive Director David Stewart said: “Servers are a vital building block, functioning largely thanks to hardware products made by firms like Broadcom, working in unison with virtualisation software from firms like VMware.”

Broadcom and VMware deal postponed

Posted on February 24, 2023 by - News

Broadcom and VMware have mutually agreed to postpone the completion date of their $61 billion merger by 90 days.

The original deadline was set for February 26, 2023, however, the deal is now expected to close May 26.

The takeover is the second biggest in the channel this year but has unleashed a pack of wild regulators.  In the EU and across the pond.

The EU competition watchdog said it will decide by June 7 whether it will hit the brakes on the deal or give it the greenlight.

Europe investigates Broadcom’s VMware deal

Posted on December 22, 2022 by - News

The European Commission is concerned enough about Broadcom’s $61 billion purchase of VMware to investigate further.

Apparently, the commission is concerned that Broadcom will have such monopoly power after the deal it could turn off rivals’ access to virtualisation.

Margrethe Vestager, European Commission executive vice president in charge of competition policy said that after the merger, Broadcom could prevent its hardware rivals to interoperate with VMware’s server virtualisation software.

“This would lead to higher prices, lower quality and less innovation for customers and consumers.”

In a statement issued through a spokesperson, Broadcom said it was confident that regulators will conclude the deal will “accelerate innovation and expand choice.”

The company said it expects the deal to close before Nov. 1, 2023.

 

Broadcom seems to be doing well

Posted on December 12, 2022 by - News

Broadcom’s fourth quarter financial results were rather good with revenues increasing by 21 percent to $8.9 billion.

Net income saw year-on-year growth of 69 percent to $3.3 billion, from $1.9 billion in the fourth quarter of 2021.

Broadcom CEO and president Hock Tan said there had been shedloads of demand from hyperscale, service providers, and enterprises.

“This growth was driven by our strong partnerships with customers and accelerated adoption of our next generation technologies.”

“As we look into fiscal 2023, our increased R&D investments during the preceding years position us to extend our leadership in next generation products within the end markets we address.”

VMware sees sales rise

Posted on November 23, 2022 by - News

VMware CEO Raghu Raghuram said the company’s sales met expectations this past quarter, rising one percent, aided by double-digit subscription revenue growth.

Raghuram said that in the past quarter the company unveiled many new offerings across our portfolio, including VMware vSphere 8, VMware vSAN 8 and VMware Aria.

“We remain committed to and engaged in helping customers transform their businesses and unlock the full potential of multi-cloud.”

Sales for its third quarter of fiscal year 2023 came in at $3.21 billion, up from $3.18 billion a year ago. Net income for the quarter, meanwhile was down 42 percent to $231 million from a year ago when it came in at $398 million.

European Commission investigates Broadcom-VMware merger

Posted on November 16, 2022 by - News

The European Commission is investigating the $61 billion Broadcom-VMware merger.

The regulatory arm of the European Union said it was notified of the deal and expects to deliver its initial decision on 20 December.

The investigation is in what’s called “phase one” and many deals are approved afterwards. However, the agency can elect to take a more detailed “phase two” look and there were rumours that the Commission wants to take the Broadcom-VMware merger to the second base.

Broadcom was not too worried that the regulator might squash the deal even if the last time Broadcom tangled with the European Commission, it settled a case in which regulators accused the company of giving illegal rebates to customers who signed exclusive supply agreements for its semiconductors.

VMware votes to approve Broadcom takeover

Posted on November 9, 2022 by - News

VMware shareholders voted to approve the pending merger with Broadcom.

Stockholders decided the merger’s fate and the compensation that Broadcom has arranged for VMware executives. It was pretty much a rubber stamp type meeting with the majority shareholder Michael Dell already pledging his 40-per cent ownership stake to voting in favour.

In all, 352.6 million shares were cast in favour of being acquired by Broadcom — 99.61 percent of the total vote — while 681,000 shares were cast in opposition and 687,000 shares were listed as having abstained.

VMware said there are 424.4 million shares of the company’s common stock that were eligible to cast votes. Of those, 353.9 million voted.

What seems to have got shareholders cross was the compensation for VMware executives, particularly the $169.4 million golden parachute that Broadcom had arranged for VMware’s top five executives, once the deal closes.

The owners of more than 4.2 million shares opposed the pay — or 1.2 percent of the total votes cast — while 348.2 million shares voted to approve the golden parachute.