16 votes

Broadcom announces plans to buy VMware in $61 billion deal

12 comments

  1. [5]
    sqew
    Link
    Well, this leaves me supremely non-confident in VMware's future. Broadcom is one of my least favorite tech companies to deal with products from.

    Well, this leaves me supremely non-confident in VMware's future. Broadcom is one of my least favorite tech companies to deal with products from.

    6 votes
    1. [2]
      cfabbro
      Link Parent
      Dell isn’t exactly the greatest tech company either, and VMware did just fine under them. So it’s possible that Broadcom keeps a similar hands-off approach.🤞

      Dell isn’t exactly the greatest tech company either, and VMware did just fine under them. So it’s possible that Broadcom keeps a similar hands-off approach.🤞

      6 votes
      1. sqew
        Link Parent
        Dell seems to at least have some technical care left in them, though; with Broadcom I'm not so sure. I agree, though, fingers crossed. Hoping for the best but expectations are low, I guess.

        Dell seems to at least have some technical care left in them, though; with Broadcom I'm not so sure. I agree, though, fingers crossed. Hoping for the best but expectations are low, I guess.

        1 vote
    2. [2]
      Cycloneblaze
      Link Parent
      Anecdotally, I've heard of people who work at VMware polishing up their resumes after hearing this news.

      Anecdotally, I've heard of people who work at VMware polishing up their resumes after hearing this news.

      4 votes
      1. cfabbro
        (edited )
        Link Parent
        To be fair, when VMware was spun off from Dell last year, all the employees with stocks and options likely got a nice chunk of change from the $12B special dividend, and they will again if this...

        To be fair, when VMware was spun off from Dell last year, all the employees with stocks and options likely got a nice chunk of change from the $12B special dividend, and they will again if this acquisition goes through…. So if I worked there I would be polishing my resume off as well, in prep for a more appealing position elsewhere (or for salary renegotiation purposes). Being part of a company involved in two big deals like that in such short order tends to give you a lot more employment flexibility. ;)

        5 votes
  2. [7]
    nothis
    Link
    VM Ware is worth $61 billion?!

    VM Ware is worth $61 billion?!

    4 votes
    1. [5]
      teaearlgraycold
      Link Parent
      We’re still in the tech bubble.

      We’re still in the tech bubble.

      1 vote
      1. [4]
        cfabbro
        Link Parent
        True, but this valuation actually isn’t all that bloated, IMO. VMware’s vSphere (hypervisor), vSAN (storage), and NSX (networking) absolutely dominate the virtualization market, and their revenue...

        True, but this valuation actually isn’t all that bloated, IMO. VMware’s vSphere (hypervisor), vSAN (storage), and NSX (networking) absolutely dominate the virtualization market, and their revenue is reflective of that.

        • VMware revenue for the quarter ending January 31, 2022 was $3.531B, a 7.19% increase year-over-year.
        • VMware revenue for the twelve months ending January 31, 2022 was $12.851B, a 9.21% increase year-over-year.
        • VMware annual revenue for 2022 was $12.851B, a 9.21% increase from 2021.
        • VMware annual revenue for 2021 was $11.767B, a 8.84% increase from 2020.
        • VMware annual revenue for 2020 was $10.811B, a 12.46% increase from 2019.
        10 votes
        1. [2]
          teaearlgraycold
          Link Parent
          Whoa. I had no idea. That’s big money.

          Whoa. I had no idea. That’s big money.

          3 votes
          1. cfabbro
            (edited )
            Link Parent
            Yeah, and at this point I would even consider VMware by itself as being blue chip, so if/when the bubble bursts they will still be fine. This is a solid acquisition.

            Yeah, and at this point I would even consider VMware by itself as being blue chip, so if/when the bubble bursts they will still be fine. This is a solid acquisition.

            7 votes
        2. whbboyd
          Link Parent
          Yeah. VMWare isn't super known to consumers, because they don't really make products of interest to the consumer market (people wanting virtualization will use Virtualbox, and people wanting...

          Yeah. VMWare isn't super known to consumers, because they don't really make products of interest to the consumer market (people wanting virtualization will use Virtualbox, and people wanting service isolation will use Docker or k8s, mostly), but they are absolutely titanic in the business space.

          3 votes
    2. stu2b50
      Link Parent
      Well, it was worth $40b. You have to pay a premium typically to take a company private (plus, Dell needs to pay for all that interest they paid on their massive loan)

      Well, it was worth $40b. You have to pay a premium typically to take a company private (plus, Dell needs to pay for all that interest they paid on their massive loan)

      1 vote