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Should Oracle or Alphabet buy VMWare instead of Broadcom?


As expected, the Broadcom-VMware deal is a go. The chip giant intends to snap up the virtualization software company for $61 billion in cash and stock, along with taking on $8 billion in VMware debt.
It’s not an inexpensive transaction, but thanks to a “go-shop” provision that gives VMware 40 days to “solicit, receive, evaluate and potentially enter negotiations with parties that offer alternative proposals,” there’s market speculation that another bidder could enter the fray.
After chewing through analyst notes on the deal, Ron and Alex wound up on opposite sides regarding whether a higher price or another bidder would make sense. Ron’s view is that the company’s value is higher than its recent financial results may imply, while Alex feels the company is not sufficiently performative to deserve a higher price.

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We’ve long speculated who might buy VMware, and after Dell spun out the company, …

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