Broadcom acquisition of VMware includes $1.5B termination fee
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Broadcom's (NASDAQ:AVGO) planned $61 billion purchase of VMware (NYSE:VMW) comes with a $1.5 billion termination fee.
VMWare (VMW) will be required to pay $1.5 billion if it accepts a superior bid from another party, unless it accepts the offer prior to the end of the day on July 5, where it then would need to only pay $750 million, according to the merger agreement.

If the deal is terminated by either party, including because regulatory clearances aren't obtained, Broadcom(AVGO) would be required to pay VMW (VMW) a $1.5 billion fee.
Broadcom's (AVGO) planned acquisition includes a 40-day go shop fee, where VMW (VMW) is allowed to solicit alternative proposals. The provision was added likely because the megadeal was hammered out between the companies in a few weeks, CNBC's David Faber reported earlier on Thursday.
Earlier, Broadcom confirmed deal to purchase VMware for $61B in cash, stock.