Broadcom To Review Two VMware Business Units For 'Strategic Alternatives,' According To Leaked Email

Fresh on the heels of Broadcom Inc.'s AVGO acquisition of VMware Inc, a $69 billion deal that closed on Nov. 22, CEO Hock Tan informed employees last week in an email that was leaked the company would review "strategic alternatives" of two of VMware's business units.

Here's what's going on.

What To Know: According to an article from Business Insider, Tan confirmed in the email that during the review of the alternatives, the company would support the End-User Computing and Carbon Black cybersecurity units. An anonymous employee informed Business Insider that Tan had previously stated such information to employees at a town hall.

The email also said Tan's technical advisor would be VMware CEO Raghu Raghuram during the transition and VMware would operate as four divisions going forward.

Additionally, as Broadcom sold off parts of the companies it acquired in the past, VMware employees previously told Business Insider they believed Broadcom would spin out or sell the end-user computing and security units.

Furthermore, following the acquisition, Broadcom fired VMware employees and several top VMware executives have left.

Related Link: Why Five Below Stock Gained After-Hours

AVGO Price Action: Shares of Broadcom were up 0.11% at $941.85 in the after-hours session at the time of publication, according to Benzinga Pro.

• Photo: Gerd Altmann from Pixabay