The UK competition watchdog protected the right of texters to exchange GIFs across platforms via leading reservoir Giphy by forcing Meta to sell the firm this year. The decision along with an investigation into Google’s alleged abuse of adtech highlighted the regulator’s stern stance against tech deals and acquisitions in the country. Now Singapore-based semiconductor maker Broadcom, with a 3.2 per cent market share, is facing scrutiny into its acquisition of cloud computing firm VMWare.
All eyes on massive deal
The deal worth $61 billion is slated to be one of the largest acquisitions in the tech world till date, and has also come under the lens of the European Commission. Even the US Federal Trade Commission is in the second phase of reviewing the details of the merger. The amalgamation is essential for Broadcom’s plan for expanding its operation in the virtualisation software space.
Suffered blow during Trump era
Broadcom has been prepared for the kind of probe that such a massive deal will invite, and has already set a date in October 2023 to finish the long procedure. Fortunately for Broadcom, times are different as compared to US President Trump’s protectionist era, when its bid to acquire American chipmaker Qualcomm was thwarted over security concerns. That deal was worth $130 billion, which is twice the size of the VMWare acquisition, but with different circumstances, Broadcom has a better chance of completing the current merger.
Back in 2018, the major Qualcomm and Broadcom amalgamation could have change market dynamics for the Singapore-based firm, which suffered from Trump’s stance against China, even though the deal never involved the Asian giant.