How a poor, skinny kid from Malaysia turned Broadcom into a tech conglomerate

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Hock Tan is going head-to-head with a legendary US technology mogul for a transformative acquisition

Broadcom CEO Hock Tan. Picture: REUTERS/LUCAS JACKSON

He proposed one of the biggest tie-ups in the history of the technology sector. Broadcom, the chip maker that Tan leads, was willing to acquire VMware, a cloud software company for $61bn . Broadcom offered $61bn in cash and stock for VMware, a 50% premium to where the shares of the latter were trading. To clinch the deal, Tan also agreed to give VMware 40 days from the signing of the deal to search for another suitor who may offer a better price. VMware said yes.

“He runs Broadcom like an investment portfolio ... they are all independent fiefdoms,” said a former employee at the company who worked closely with Tan. “If he has a dominant position in any market, he’ll go in and raise those prices.”Tan has said he was an “18-year-old skinny kid” growing up in Malaysia when he won a scholarship in 1971 to attend engineering school at MIT. His parents could not afford to send him to college. He went on to earn an MBA from Harvard University.

 

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