Broadcom and VMware: The $69 Billion Integration That Worked, at a Cost
Most acquisitions fail because the buyer moves too slowly. Broadcom did the opposite.
It closed its roughly $69 billion acquisition of VMware in November 2023. Within weeks, the product line was cut to two core bundles, new perpetual licenses ended, partner programs were reset and costs started coming out. About a year later, Broadcom's management said VMware's operating margin had reached 70% and the $8.5 billion EBITDA target would be beaten early.
Customers paid part of that bill. Renewal costs rose sharply, AT&T sued over support before settling, and European cloud providers have asked an…
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