VMware slowing deals before Broadcom merger closes: report
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VMware (NYSE:VMW) is in the process of being acquired by Broadcom (NASDAQ:AVGO) and some of VMware's customers are trying to lock lock-term contracts, except the company has instituted new policies that are slowing the pace of deals, Insider reported on Tuesday.
The news outlet, citing several VMware (VMW) employees, noted that the company's salespeople have had difficulties keeping up with the pace of new deals as the new policies have made it so that deals can take days, weeks or even months to be approved. 
"VMware has made commitments to preserve the value of VMware until the acquisition is closed," the company wrote in an internal message, according to Insider. "Therefore, we have reinforced our deal review." 
It's expected the new processes will not "materially affect" the company's ability to close the deals, but it could result in increased closure times.
VMware (VMW) and Broadcom (AVGO) did not immediately respond to a request for comment from Seeking Alpha.
VMware (VMW) shares were up more than 1% to $119.42 in mid-day trading, while Broadcom (AVGO) gained nearly 1%. 
In May, Broadcom (AVGO) announced that it was acquiring VMware (VMW) for $61B in cash and stock, though the deal is not expected to close at least until 2023.
VMware (VMW) is slated to report second-quarter results on August 25. On Monday, research firm Moness, Crespi, Hardt said investors will be parsing through VMware's (VMW) results for signs of a slowdown in growth.
Earlier this month, hedge fund Paulson & Co. disclosed that it had bought 500,000 shares of VMware (VMW) during the second-quarter, while also making several other changes to its portfolio.