Broadcom Reportedly Discusses Buying VMware, Palo Alto Networks CEO Nikesh Arora on Cybersecurity & FTX Pursues Acquisition Targets 5/23/22

TechCheck

CNBC

Tech, Cnbc, Disruptors, Business, Faang, Management, Technology, Investing

4.5 • 66 Ratings

🗓️ 23 May 2022

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Our anchors begin today’s show breaking down reports that chipmaker Broadcom is in talks to purchase cloud computing firm VMware, with insight from GGV Capital Managing Partner Glenn Solomon and Calixto Global Investors Founder Eduardo Costa. Then, cybersecurity provider Palo Alto Networks Chairman and CEO Nikesh Arora joins for an interview on the global state of digital attacks from the World Economic Forum in Davos, Switzerland. Next, our Julia Boorstin covers video game maker Electronic Arts reportedly pursuing a buyer, and Bank of America analyst Wamsi Mohan shares his thoughts on potential M&A options for Apple. Later, CNBC’s Mike Santoli offers insight on how stocks are digesting consumer weakness, and CNBC’s Kate Rogers looks at crypto exchange FTX shopping around for an acquisition target, according to sources. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Transcript

Click on a timestamp to play from that location

0:00.0	I'm Carl Kintanilla. You're listening to CNBC's Tech Check. Our show is live weekdays at 11 a.m. Eastern. Listen in. Good Monday morning. Welcome to Tech Check. I'm Carl Kintania with John Ford and Dear Dobosa. Today, Mayday M&A for tech as the NASDAQ tries to break its longest losing streak since the dot-com bubble in 01. With so many falling valuations. Who is the next potential takeover target?
0:22.6	VMware, according to some reports this morning, we're going to break down the latest
0:25.7	as shares surge on news of this potential deal with Broadcom. That's not all. Got more on EA's
0:31.3	takeover dreams. FTX's shift into stocks and a whole lot more stocks and targets this hour deep.
0:39.0	Yeah, Kyle, we're going to start with that potential shakeup in the semi and software world.
0:43.3	Sources telling CNBC that Broadcom is in talks to acquire cloud service provider, VMware.
0:48.1	Discussions are reportedly ongoing.
0:49.8	No announcement is imminent, but it does paint an interesting picture of the M&A environment at this
0:55.6	moment in 2022. After a record $5.9 trillion worth of deals last year, sinking valuations could
1:02.6	mean some bargain basket prices for companies that have the cash or stock to do so.
1:08.0	The value of M&A deals in the first quarter fell by more than 20% from the
1:12.3	fourth quarter according to global data. We will talk more about EA in a moment, which has been
1:16.6	shopping itself around for a deal. John, it's interesting. The moment that we're in, price is still
1:23.2	an issue here. What is the value of VM, where its current market cap today is around just less
1:29.1	than $50 billion. It was at $70 billion last October. It was even more than that in 2019.
1:34.6	So obviously everything looks a lot cheaper at this moment. But what Michael Dell in particular,
1:40.3	who's still a major shareholder in VMware, that's going to determine whether this deal gets done or not.
1:45.0	It's still a big question. What is it worth? Well, yeah, I don't know exactly what it's worth.
1:50.2	What is it worth to whom, I guess, is part of the question. But step back, why would Broadcom want to do this?
1:55.5	I mean, here's a company with around, what, 27.5 billion net revenue. VMware's got around 13 billion in revenue.
2:03.6	When you look at Broadcom's operating income,
2:06.6	about 11 billion in operating income from semiconductors,
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from CNBC, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of CNBC and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.