Broadcom’s $61B Buy Of ‘Iconic’ VMware: 5 Big Things To Know
From what Dell CEO Michael Dell has to say to a ‘go-shop’ provision in the deal allowing VMware to look for other suitors, here are the five biggest things to know about Broadcom’s historic $61 billion move to acquire VMware.
Michael Dell: ‘This Is A Landmark Moment’
Dell Technologies Chairman and CEO Michael Dell is currently the largest shareholder of VMware with a 40 percent stake in the company, while Dell is also VMware’s chairman of the board. Dell likely had a significant say in the deal.
Michael Dell released a statement Thursday supporting the merger.
“Together with Broadcom, VMware will be even better positioned to deliver valuable, innovative solutions to even more of the world’s largest enterprises,” said Dell, whose company spun off VMware in November 2021. “This is a landmark moment for VMware and provides our shareholders and employees with the opportunity to participate in meaningful upside.”
Michael Dell owns 40.2 percent shares of VMware, while Dell’s investment partner and private equity firm, Silver Lake, owns approximately 10 percent share in VMware.
Both Michael Dell and Silver Lake have signed support agreements to vote in favor of the transaction as long as the VMware board of directors continues to recommend the proposed transaction with Broadcom.
The deal is expected to be completed in Broadcom’s current fiscal year 2023.
The Takeaway: Michael Dell gave his approval of the acquisition, which means the deal is likely a lock.