VMware Stock Tumbles On Fresh Report That Acquisition Is In Jeopardy

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VMware (VMW) stock fell hard on Thursday after a news report confirmed chatter that the Chinese government might block Broadcom‘s (AVGO) acquisition of VMware.


The Financial Times reported Thursday that Chinese regulators are considering whether to delay approval of the $69 billion deal.

China’s State Administration of Market Regulation has not signed off on the deal announced in May 2022. The delay is seen as a response to the U.S. government’s recent tightening of trade restrictions on sales of advanced semiconductors and chip gear in China.

Broadcom says it still expects to close the VMware acquisition on Oct. 30.

In afternoon trading on the stock market today, VMware stock plunged 8.4% to 152.25. On Tuesday, VMware stock dropped 7.7% to 165.10 after rumors surfaced about China’s potential move.

Meanwhile, Broadcom stock sank 0.3% to 884.21 on Thursday.

Broadcom, VMware Stock Both Tech Leaders

San Jose, Calif.-based Broadcom is an diversified technology company that sells semiconductors and infrastructure software solutions. Palo Alto, Calif.-based VMware provides cloud computing management and networking software.

VMware stock and Broadcom stock are both on the IBD Tech Leaders list.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.


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