Reply To: Traders Market Weekly: Memorial Weekend a Time for Reflection

#37283
Truman
Participant

Bloomberg reported that Broadcom (AVGO) -4% is in talks to acquire VMWare (VMW) +19%. Broadcom has been quiet as of late, but it is a semiconductor roll up that has increasingly focused on acquiring higher margin software businesses. Michael Dell still owns 40% of VMW, which was actually a little cheaper than AVGO relative to profit estimates coming into today. VMW closed Friday with a $50.5B EV, trading at 10x E/EBITDA and 13.6x EPS. Broadcom closed on Friday at 12x EV/EBITDA and 15x EPS.