This year, tech stocks are predominantly declining, although they have risen well in the past. Commenting onthe possibility of a deal between Broadcom and VMware, the latter’s former CEO, Patrick Gelsinger, said there is a high likelihood of industry consolidation accelerating under such conditions, as well as an increase in the number of initial public offerings.

Image Source: Bloomberg

Patrick Gelsinger, who led VMware for eight years before taking over at Intel in February last year, said in an interview with Bloomberg this week that the news of Broadcom’s takeover of the developer was both disturbing and confusing. “If this helps VMware expand its business and accelerate innovation, then it’s for the best, and if it doesn’t help, it’s bad,” Gelsinger said categorically.

With the capitalization of many companies declining, Patrick Gelsinger sees the right conditions for further industry consolidation. Large companies will take over smaller ones. As The Wall Street Journal reported this week, Broadcom is willing to pay $140 per share for VMware, which equates to a deal worth around $60 billion. The latter company’s share price rose almost 25% to $119.43.

Patrick Gelsinger also does not rule out that companies will go public on the stock market more often in search of funds to finance their activities. Intel itself expects to launch an IPO by the end of the year of the Israeli company Mobileye, bought in 2017, which specializes in the development of components and software for active driver assistance systems. The head of Intel also added that he sees no reason to eliminate the shortage of semiconductor components in the market until 2024.