Thread regarding VMware layoffs

“Now if they want to move the deal close date they will need to move the Election date as well and since they already filed 425/8K, they will need to do so again.”

They don’t need to move the election date again everyone’s been notified of that deadline whether it closes nov 1 or dec beyond. This isn’t sound reasoning

Keep an eye on VMW and BC SEC filings. They filed 425 and 8K filings for the Oct 23 election date. They did not file those for prior election dates that moved. This date is exactly 3 business days before the close as required by the merger agreement. Means close date was final.

Now if they want to move the deal close date they will need to move the Election date as well and since they already filed 425/8K, they will need to do so again. That will be sure sign of the delay. If they dont file anything then this deal is closing as planned in my opinion.

BC sells all its chips 1 year in advance.
That is how strong the demand is, so I’d guess that there are more than enough buyers if China decides to play out its geopolitical games with BC.

Play it forward and lets think ... if HT moves forward with the deal, maybe China bans BC and BC has $10B sales problem ... but what happens to China? These 10B worth of BC products, where do they fine replacement? They use these BC products in building cell phones and running data centers etc. Can China ban BC and survive or pivot to other products immediately? I don't think so. I don't think BC would be doing business of $10B in China if China could force their cellphone makers to use local chips. Do they have access to alternative Chips comparable to China? If answer is Yes then HT has a problem and if answer is NO then HT still has leverage and levers he can pull or buttons he can push to make this happen somehow.

In response to @1map+1paTTmQN:

This is likely going to be a significant go-forward strategy for future M&A involving China. While the accessible market in China is potentially lucrative, the costs have just now gone up dramatically - for ANY organization. There's increasing risk in business in and with China politically and economically. I wouldn't be surprised if we see one or more of the 3 options presented take place if the CCP unequivocally blocks the deal.

There is only one group of people who can solve this problem - the Pivots.

Those suggesting the split/carve out alternative then why did Intel not go through that route with Tower after China delayed their approval? Is it really that simple? Pardon my ignorance

I don't think the acquisition will go through. 1/3 of BC's revenue comes from China. BC will not take a risk if China doesn't approve.

Yes, it is disastrous to BC. China already stopped 2 merges - Qualcomm/NXP, Intel/Tower

That said, the VMW outlook is going to be bleak due to all the cloud growth failure data that came out of the EU regulatory review. That's what we should be concerned about now.

I'm shocked and amazed at the lack of critical thinking here.

1. China will be hostile to ALL foreign businesses, as evidenced by your own concerns. Prepare to give China IP and shares of your business to even operate.
2. Export restrictions to china will limit your business.
3. Broadcom's own revenue is primarily driven by business in China.
4. Be concerned with Cloud Growth... it's failing!

Sounds like the BEST move for anyone with half a brain would be to

1. Exit China
2. Hedge against china by operating in a $400B market that can exist without china
3. Exit public cloud and focus on building out private cloud investments and solutions

That basically describes the Broadcom/VMware acquisition to a T. Wall Street is light years behind reality, and Hock Tan is playing chess, not checkers.

This is called leadership. He's saving entire industries and jobs by making these moves. China will be left to dust, wall street will rebel, but the rebellion will be short lived.

China will declare war with Taiwan and form an axis with russia and iran, and we'll have a mess on our hands soon enough. There wont be a company on the planet outside of china doing business with china, soon enough. You might have to be living under a rock to not see this train coming.

Make no mistake - this is a serious threat to the merger.

Should the merger fail, we at VMW are going to feel real pain. Stock awards worth pennies on the dollar, layoffs, horrendous blow to morale.

@1edo+1paTTmQN

Because this has to be viewed at from multiple angles, unlike your seemingly black and white perspective.

I’d bet too that no matter what happens with BC there will be layoffs.

@1hin+1paTTmQN Ridiculous. How can VMware lay people off for Broadcom? Id--t troll

Apprently they will still continue with the layoffs even if it falls through. - director

Let's look at the bright side of this falling through. Yes, VMware will be left a waste of a company ruined by Betsy and Magoo sure - but all of the corrupt VPs and leadership won't get their big payouts!! Justice?

Eveyone better hope the acquisition goes through. VMware has destroyed its products and most of the best and brightest have left. Without rescue by Broadcom it's going to be a fate worse than Novell.

Once Xi realizes that Tanzu Labs is part of this deal, all issues will fade away like agile pixie dust.

I don’t think the Biden administration thinks we’re important enough to factor in their decision

I realize that there are many factors, but it would have been nice if our political weight was able to wait until AFTER a chip company's acquisition occurred, before setting up new restrictions.

Some geopolitics added in for additional stress, joy…

This is all political posturing. The acquisition goes through.
that is the problem actually. Politics is very hard to resolve

I agree. China is not just delaying. They are doing this for retaliation against US's trade restriction.
BC can't simply ignore and go through the acquisition when their 1/3 of revenues come from China.
I don't think the acquisition will go through.

This is all political posturing. The acquisition goes through.

that is the problem actually. Politics is very hard to resolve. If it was business remediation then it's easy. China wants to retaliate which makes the whole situation illogical and unreasonable to negotiate.

Those suggesting the split/carve out alternative then why did Intel not go through that route with Tower after China delayed their approval? Is it really that simple? Pardon my ignorance

@qoe+1paTTmQN, they will split/carve out China. All good.

I don't think the acquisition will go through. 1/3 of BC's revenue comes from China. BC will not take a risk if China doesn't approve.

@glv+1paTTmQN, it can. They will make the Chinese entity do its independent business and then it’ll happen as China doesn’t want to lose out.

The acquisition will go through. They will just carve out China like Dell did. This is not the end, my friends.

“China’s antitrust regulator rarely formally blocks mergers, especially if other major jurisdictions have already approved it,” said a Chinese antitrust expert who asked not to be named.
If authorities do not want to approve a transaction, they prefer to extend the review process repeatedly until the parties lose patience and give up”

Yes, it is disastrous to BC. China already stopped 2 merges - Qualcomm/NXP, Intel/Tower

Broadcom has a major presence in China (4 office locations). It's unclear if this is disastrous or temporarily a short-term crisis for them.

That said, the VMW outlook is going to be bleak due to all the cloud growth failure data that came out of the EU regulatory review. That's what we should be concerned about now.

I've read some places that the deal can still happen without China's approval. The office in China just works independently for some months while negotiation continues.

@aaf+1paTTmQN how are you so sure the acquisition will go through? China blocked the deal, and it cannot be closed without China's approval.

This is all political posturing. The acquisition goes through.