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Broadcom to acquire VMware for $61B (reuters.com)

596 points by squidofbits · 1571 days ago · 413 comments on HN

Article summary

The article reports on Broadcom's acquisition of VMware for $61B. The discussion reveals that VMware has a large enterprise customer base and a wide range of products, including virtualization software and endpoint protection. The acquisition is seen as a consolidation in the tech industry, with some commenters expressing concerns about the impact on competition and innovation. The acquisition price suggests that Broadcom is paying for VMware's customer base, sales and support connections, and engineering organization.

Main themes

  • tech industry consolidation
  • intellectual property laws
  • antitrust legislation
  • competition and innovation
  • global tech industry
  • corporate governance

What commenters say

  • The acquisition of VMware by Broadcom is a sign of consolidation in the tech industry, which can stifle competition and innovation.
  • Intellectual property laws, including software patents, play a significant role in driving acquisitions and consolidation in the tech industry.
  • The acquisition is driven by Broadcom's desire to acquire VMware's customer base, sales and support connections, and engineering organization, rather than its intellectual property.
  • Some commenters argue that antitrust legislation should be stricter to prevent large companies from acquiring smaller ones and stifling competition.
  • Others argue that consolidation is inevitable in mature markets and that it can lead to increased efficiency and profitability.
  • The role of intellectual property laws in preventing big companies from cloning smaller companies' products is debated, with some arguing that it is effective and others that it is not.
  • The acquisition raises concerns about the impact on the global tech industry, with some commenters arguing that Asian tech giants will continue to grow and compete with Western companies.
  • The idea of making CEOs and boards personally liable for their companies' actions is proposed as a way to check the growth of large companies and promote competition.