VMware stock fell hard on Thursday after a news report confirmed chatter that the Chinese government might block Broadcom's acquisition of VMware.
The Financial Times reported Thursday that Chinese regulators are considering whether to delay approval of the $69 billion deal.
China's State Administration of Market Regulation has not signed off on the deal announced in May 2022. The delay is seen as a response to the U.S. government's recent tightening of trade restrictions on sales of advanced semiconductors and chip gear in China.
Broadcom says it still expects to close the VMware acquisition on Oct. 30.
On the stock market today, VMware stock plunged 9.6% to close at 150.31. On Tuesday, VMware stock dropped 7.7% to 165.10 after rumors surfaced about China's potential move.
Meanwhile, Broadcom stock sank 2.2% to 867.83 on Thursday.
Broadcom, VMware Stock Both Tech Leaders
San Jose, Calif.-based Broadcom is an diversified technology company that sells semiconductors and infrastructure software solutions. Palo Alto, Calif.-based VMware provides cloud computing management and networking software.
VMware stock and Broadcom stock are both on the IBD Tech Leaders list.
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