Broadcom to buy VMware in $61 billion deal

Broadcom said on Thursday it will buy cloud service provider VMware in a $61 billion (roughly Rs. 4,73,223 crore) cash-and-stock deal to further diversify the chipmaker's business into enterprise software.

Broadcom's shares were up 1.6 percent, while those of VMWare were down nearly one percent in premarket trading.

The acquisition is the second biggest announced globally so far this year, after Microsoft's $68.7 billion (roughly Rs. 5,32,955 crore) deal to buy video game maker Activision Blizzard in January.

Each VMware shareholder will get $142.50 (roughly Rs. 11,000) per share, resulting in a premium of over 48 percent to the stock's close since the deal talks were first reported on May 22.

VMware shareholders will get $142.50 in cash or 0.2520 shares of a Broadcom common stock for each VMware share held.

Also Read | How to free up storage space on Android smartphone

Also Read | Google will launch its first foldable Pixel phone in 2023, says analyst

Also Read | Redmi 10 Prime+ 5G budget phone expected to launch in India soon: Check expected specs