Michael Dell, an esteemed technology entrepreneur and one of the wealthiest individuals globally, stands to gain a staggering $20 billion (£12 billion) if Broadcom, a semiconductor company, proceeds with its planned $50 billion acquisition of VMware.
Bloomberg reported that Broadcom is currently engaged in negotiations for the purchase of the cloud computing firm, which has resulted in a 15% surge in VMware’s shares during early trading on Monday.
This potential transaction would rank among the largest in the history of the technology industry. It occurs during a notable decline in software company shares due to rising interest rates and surging inflation.
Renowned for their wireless internet and Bluetooth chips present in smartphones and routers, Broadcom has rapidly ascended the ranks to become one of the leading technology companies worldwide through a series of acquisitions. VMware, on the other hand, provides “virtual software” that enables users to access remote versions of systems, such as Windows, via the internet.
In 2016, Dell, the computer manufacturer founded and led by Michael Dell, acquired a majority stake in VMware during the acquisition of storage company EMC, which already held an 81% ownership in VMware.
Subsequently, Dell spun off VMware by distributing shares to shareholders, with Michael Dell, who currently possesses approximately 47% of Dell, receiving a 40% stake in VMware.
According to Bloomberg, Michael Dell presently ranks as the 26th richest individual globally, with a net worth of $44 billion. His entrepreneurial journey began in the 1980s when he founded his eponymous company in his University of Texas dorm room, ultimately transforming it into one of the largest PC manufacturers worldwide during the 1990s. Dell is renowned for producing affordable and vibrant laptops.
In 2013, he facilitated a private equity takeover of Dell, only to return the company to public markets in 2018.
Broadcom, helmed by Malaysian-born Hock Tan, was established in 1961 as a spin-off of Hewlett Packard. The company was based in Singapore until 2017 when Tan relocated it to the US, hoping to obtain more favorable treatment from regulators.
In 2018, Broadcom’s ambitious $117 billion acquisition of chipmaker Qualcomm, which would have been the largest tech takeover in history, was thwarted by Donald Trump’s intervention.
As of now, both Broadcom and VMware have chosen to remain silent regarding the potential acquisition.
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
