Chip giant Broadcom is reportedly in talks to acquire VMware in a deal that would further diversify Broadcom’s operations into the software space and tie VMware back into a large owner just months after gaining its freedom from Dell Technologies.

The potential deal, which was first reported by Bloomberg on Sunday, would see Broadcom add VMware’s extensive multi-cloud-focused software operations. Other reports indicated a deal could be announced “soon.” VMware is scheduled to host its latest earnings call on May 23, while Broadcom is set to report on June 2.

Broadcom and VMware did not respond for comment by press time.

Mauricio Sanchez, research director at Dell’Oro Group, said that VMware would be a “nice complement” to Broadcom’s business.

“There's a lot of upside here for Broadcom,” Sanchez said in an interview with SDxCentral, noting that Broadcom CEO Hock Tan “is always looking for franchises.”

“If there’s any franchise that would be a good fit to the silicon and growing software business unit that definitely would be VMware,” Sanchez added.

Broadcom acquired infrastructure software vendor CA Technologies in 2018 for $18.9 billion, and bought up security vendor Symantec for $10.7 billion in 2019.

Beyond Broadcom expanding its software aspirations, a VMware acquisition would benefit Dell Technologies CEO Michael Dell’s pocket. Dell maintained a 41% stake in VMware post-spin, which could result in a handsome financial windfall for the billionaire.

However, Sanchez also warned that the deal could stifle VMware’s newly found freedom.

Dell Technologies completed its spinoff of VMware last year. That deal provided VMware the freedom to execute on its vision to create a unified management layer via software across all clouds and hardware infrastructure. It also simplified the company’s capital structure and governance model.

“When [Broadcom] has gobbled up these large firms it has tuned down the public presence of those companies, it drives efficiencies and cutbacks,” Sanchez said of Broadcom’s past deals. “There’s also a dark cloud as to whether there's going to be a culture mismatch or a perception by the market that VMware’s looking to become that independent Switzerland for multi-cloud may become too biased to particular silicon from Broadcom.”

Former VMware CEO Pat Gelsinger, who is now CEO of fellow chip giant Intel, also hinted at that concern.

"I have a lot of soul in that company," Gelsinger told Yahoo Finance Live on the sidelines of this week’s World Economic Forum in Davos, Switzerland. "And [with] any change in structure or acquisition, what I would be motivated to see is the innovation spirit of VMWare alive and well. … This is a large software asset innovating out of an important set of hybrid cloud and fundamental platform technologies. If it doesn't help out (the deal) that innovation cycle, it's probably not good. If it does, it's probably good.”