What will happen to the offers, if China blocks the deal?
Are the offer letters conditional based on regulatory approvals?
Or, Broadcom has decided to close the deal on oct 30th without China?
14 replies (most recent on top)
Why discussed today?
It was discussed that Broadcom will pay a fine to China and the deal will close as scheduled on the 30th
Our team is being told as of today that the deal is going forward with or without China’s approval. VMware stock will be delisted on the NASDAQ Oct 30th.
My manager said they have all approvals and take my offer.
F-k china
A bunch of beauracrats in China will get a few bazillion yuan from Huckstar to make it all come together at the last minute.
@hwu+1pewi1lM I agreed with what you said.
Why would BC make official offer letters to hundreds of folks, if they are uncertain about the deal closure?
Nobody knows for sure. The Chinese approval process is (intentionally) opaque, so everyone is completely in the dark, except for the Chinese.
Of the three possibilities (China approves--with or without conditions, China delays/blocks the deal, or BC goes ahead without approval) I think one or three are the most likely. The fact that BC's CEO has vehemently insisted that the deal will go through as scheduled means he's got a lot riding on it reputationally. I suspect he either knows it will go through from some inside information or he plans to complete the transaction without Chinese approval if necessary. I'd be really surprised if he went on the record the way he has and then allowed the deal to fall through.
No update
China will delay the deal. Whether BC wants to risk upsetting China is up to their risk/reward tolerance.
China is playing for tim, they will wait until the very last minute and put some conditions, in their favor, that's it.
"Offers can and have been retracted."
There could be legal issues.
Why would Broadcom make official offers to a number of folks, if they are uncertain about deal closure?
Offers can and have been retracted.
What is China?