Why Broadcom Shares Are Falling Today

Broadcom Inc AVGO shares are trading lower Monday morning following several reports the company is in talks to acquire Vmware Inc VMW. 

According to multiple reports, citing people familiar with the matter, Broadcom has expressed interest in acquiring Vmware for up to $50 billion. However, deal terms have not been confirmed as negotiations between Broadcom and VMware are reportedly ongoing and a deal is not expected to be imminent. 

Broadcom has a highly diverse product portfolio across an array of end markets. A Vmware acquisition could give the company access to data centers which would align with its previously stated goal of becoming an enterprise infrastructure provider. 

Vmware became a stand-alone entity after a spin-off from Dell Technologies Inc DELL last year. The company is an industry leader in virtualizing IT infrastructure. Vmware stock traded down near five-year lows last week. 

See Also: 24 Stocks Moving in Monday's Pre-Market Session

AVGO Price Action: Broadcom shares have traded between $445.33 and $677.76 over a 52-week period.

The stock was down 4.88% at $516.68 at press time.

Photo: Martijn Boer from Flickr.