Broadcom–VMware deal: what did shareholders get?

Broadcom’s $61bn acquisition of VMware was one of the largest technology deals of its time, bringing together semiconductor expertise and enterprise software capabilities.

By Dan Mitchell08:43 (UTC), 14 November 2025

A provider of multi-cloud services for apps, VMW was acquired for $61bn (£50bn) - Photo: Getty Images.

On 26 May 2022, Broadcom Inc. (AVGO) announced its plan to acquire VMware (VMW) for approximately $61bn (£50bn), making it one of the largest technology deals of that year. The agreement was approved by VMware shareholders on 4 November 2022 and, following several regulatory delays, the acquisition was completed on 22 November 2023. After completion, VMware’s common stock was removed from the New York Stock Exchange (NYSE).

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How much did VMware shareholders receive?

Under the terms of the agreement, VMware shareholders could choose to receive either $142.50 in cash per share or 0.2520 Broadcom common shares for each VMware share held.

Overall, around half of all VMware shares were converted into cash and half into Broadcom stock, resulting in an approximately even division between the two options. This offer represented a premium of about 32–44% above VMware’s share price before the announcement.

Michael Dell, who held a major stake in VMware through Dell Technologies, was among the largest beneficiaries, reportedly earning around $20bn from the sale. After the transaction, Broadcom shareholders owned about 88% of the combined company, while VMware shareholders held around 12% on a fully diluted basis.

Past performance is not a reliable indicator of future results

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Post-acquisition changes and strategic direction

Since completing the deal, Broadcom has implemented significant structural and strategic adjustments to VMware’s operations. In early 2024, Broadcom divested VMware’s End User Computing (EUC) division to private equity firm KKR for approximately $4bn, marking a clear shift toward enterprise-focused software and cloud infrastructure.

Between 2024 and 2025, the company simplified its product licensing and pricing structures, reorganised its partner ecosystem, and discontinued some partnerships with smaller resellers and cloud service providers. These actions aimed to concentrate resources on VMware’s enterprise and hybrid cloud solutions.

Although the changes to pricing and licensing initially drew some criticism, Broadcom’s integration of VMware contributed to around 25% revenue growth in its infrastructure software segment, according to company reports. Broadcom has emphasised its focus on long-term innovation and customer value, rather than short-term pricing gains.

In an official blog post, President and CEO Hock Tan stated, 'Our growth into a global technology leader was not based on taking existing products and raising their prices, but by creating technology and products that provide clear value to customers and continuing to improve them.' Tan further emphasised, 'We fuel growth by offering more and better products so customers are using more of our entire portfolio of technology products, rather than just one or two.' He noted that Broadcom’s strategy focuses on long-term value, innovation, scaling, and investment in customer-focused R&D, with the goal of developing and delivering improved solutions without significantly raising prices (Broadcom, 25 October 2022).

Industry response and outlook

Industry leaders, including IBM’s CEO, Arvind Krishna, have recognised VMware’s ongoing significance in enterprise software. At a 2022 event, Krishna stated that the IBM-VMware relationship is 'a strong, enduring partnership that just got stronger,' highlighting VMware’s role as a key technology partner supported by continued investment (TechChannel, 7 September 2022).

Broadcom’s CEO, Hock Tan, described the acquisition as an important milestone in Broadcom’s strategy to build a leading infrastructure technology business, combining semiconductor expertise with enterprise software capabilities. VMware is now positioned as a core brand within Broadcom’s software division, supporting private and hybrid cloud solutions for large organisations (Computer Weekly, 28 February 2024).

Broadcom share price history after the VMware deal

Broadcom’s share price has seen periods of fluctuation over the past two years, reflecting changes in market conditions and investor sentiment following its acquisition of VMware.

2023

At the end of 2023, AVGO closed at $111.70 and continued to rise through 2024 as the company’s expanding software operations attracted increased market attention. It ended the year at $231.92, marking a strong annual gain.

2024

AVGO underwent a 10-for-1 stock split on 15 July 2024, with all shareholders receiving ten shares for every one held at the close of trading on 12 July 2024. This was Broadcom’s first stock split since Avago acquired the company and adopted the AVGO ticker in 2016. The split made shares more accessible and reduced the per-share price without changing the total value of investors’ holdings.

2025

In 2025, Broadcom’s stock maintained an upward trend, opening at $231.90 on 2 January and closing at $356.55 on 6 November – an increase of around 54% year to date. The share price reached its highest point of the period at $392.03 on 29 October 2025, while the lowest levels were recorded in early April at around $134.64.

Compared with $179.78 on 6 November 2024, the stock was approximately 98% higher year on year, indicating how Broadcom’s post-acquisition integration and growth in infrastructure software have been reflected in its market valuation.

Past performance is not a reliable indicator of future results

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Key takeaways

Broadcom completed its $61bn acquisition of VMware on 22 November 2023.
VMware shareholders received either $142.50 in cash per share or 0.2520 Broadcom shares.
Approximately half of all VMware shares were converted into Broadcom stock.
Michael Dell earned around $20bn from the transaction.
Broadcom sold VMware’s EUC division to KKR in 2024 for $4bn.
Broadcom’s infrastructure software revenue increased by around 25% following the acquisition.

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FAQ

What was the value of Broadcom’s acquisition of VMware?

Broadcom’s acquisition of VMware was valued at around $61bn (£50bn), making it one of the largest technology mergers of its time. The transaction was completed on 22 November 2023, following a series of regulatory approvals across multiple regions.

How were VMware shareholders compensated in the Broadcom deal?

Under the terms of the agreement, VMware shareholders could choose to receive either $142.50 in cash per share or 0.2520 Broadcom common shares for each VMware share held. Roughly half of shareholders opted for cash and half for stock, resulting in an approximately equal split between the two options.

What changes did Broadcom make to VMware after the acquisition?

Following completion, Broadcom introduced a simplified product and pricing structure, reorganised its partner network, and sold VMware’s End User Computing (EUC) division to KKR for around $4bn. These measures aimed to focus more closely on VMware’s enterprise and hybrid cloud services.

What does the acquisition mean for the broader technology industry?

The acquisition has strengthened Broadcom’s position as a diversified infrastructure technology provider, combining semiconductor expertise with enterprise software capabilities. Industry leaders, including IBM, have acknowledged VMware’s continuing relevance in the enterprise software market, suggesting it is likely to remain a key contributor to hybrid cloud development under Broadcom’s ownership.