Update 9:25am: Updates shares, add transaction details.
Talks are ongoing and could still fall apart, according to a Bloomberg report, which cited people familiar. The companies are discussing a cash and stock deal and an agreement may come soon, according to a WSJ report. The FT reported that deal could be valued at about $50 billion.
A deal could be reached by Thursday, when VMWare (VMW) is scheduled to release its quarterly results, though "material" terms of a transaction still need to be worked out, according to CNBC's David Faber.
Broadcom (AVGO) attempted to purchase chipmaker Qualcomm (QCOM) for more than $100 billion in 2017, though withdrew its bid in 2018 after the deal was blocked by the Trump administration on national security concerns.
Dell Technologies (DELL) completed the spin-off of its 81% equity ownership in VMware (VMW) in November. VMware (VMW) distributed a special cash dividend of $11.5B to its VMware shareholders, including Dell, which received $9.3B.