Somehow analysts are saying this is a strategic fit.
Broadcom is an embedded chip maker primarily selling communications chips (wifi, cellular, Ethernet, etc).
Vmware is a virtual-machine software developer.
Virtual machines are used to isolate cloud instances on large servers.
They're both involved in internet technology, but metaphorically it's like a tire company buying a body-panel maker.
The only synergy surface is device drivers, but those are part of the operating system that would be run within the VM instance. There's very little to be gained from tuning the VM further.
So what is the reason to do this merger? And does it indicate a lack of hard investment opportunities for AVGO in its own business, and does that indicate big trouble for tech growth overall?
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