It would be extremely surprising if Hoc would get the China approval on time, for such a big acquisition and especially in this tense environment.
Moving forward without China approval is also a risky route.
Qualcomm abandoned NXP since they didn't want to pi-s off China.
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Hahahhahaha. Those fab plants will never get built in market time and half of the money will be lost to corruption, lawyers and delays. Anyone who believes the US Government ... is a fool. Good luck when Taiwan decides peacefully it wants to reunify with China. CHIPS Act!!! Hahahahaha.
destroy it's manufacturing base decades ago and economy in the last election.
Uh huh - just the last election. Have you heard of
https://en.m.wikipedia.org/wiki/CHIPS_and_Science_Act
The United States is currently the #1 starter of proxy wars and none of this would be happening if the U.S. did not destroy it's manufacturing base decades ago and economy in the last election.
https://appleinsider.com/articles/22/12/03/apple-tells-suppliers-to-plan-for-shift-of-manufacturing-out-of-china
Apple declared their exit from China over a year ago.
And they advised ALL vendors that want to continue to do business with apple to do the same.
Are we done debating this yet? What exactly do you believe Broadcom will be selling to China? How do you believe they will make any revenue in the future in a hostile country starting proxy wars all over the world?
Don't make China irrelevant so fast. While I don't know what's going to happen but saying that China is obsolete and sway no influence is extremely immature and uninformed take.
20% of Avago revenue come from Apple. Only China has to nudge apple to move away from Avago to continue to enjoy their market.
What you think going to happen?
It appears that a lot of BC people leveraged their BC wealth and getting stuck in the VMW deal. Hope they will be made whole again soon.
China has NOT approved. They have to explicitly approve for this deal to go forward.
Broadcom is sourcing a lot of their material exclusively from China and 35% of their chip sales are to or through China (read the 2022 annual report for all details).
They have to explicitly approve - IF Broadcom does any future business in China. That's a HUGE "IF".
Sanctions + Regional Tensions + Acquiring a company driving more than enough revenue to replace what is lost... you keep gambling on this co-dependency with China. That ship has sailed. Get with the program. It's over. China is done. Nobody cares about China's approval... there wont be any business in china to do moving forward. Its too toxic and the 2022 revenue will never be the same moving forward. 2022 was all about producing automotive chips. The black market on those chips drove the price through the moon at the time, but that ship has sailed. Don't expect 2022 revenue levels again even if AVGO wasn't acquiring VMW. Pay attention here... china is done. Stick a fork in it. You won't risk a $70B acquisition to make $2-3B next year from China, and that number will soon fall to $0B. It will never be $11.9B ever again, that's so obvious. Pull yourself together son. Diversify and move on. T-24 hours, deal will be done without China's "explicit approval".
@lqe+1pkljWXA "Deal got approved long time ago"
Hock is pretty confident he has China's approval. The only way this is possible if BC have been supplying China with banned chips (7nm chips for Huawei mate, etc) and now expect the favour to be returned.
China has NOT approved. They have to explicitly approve for this deal to go forward.
Broadcom is sourcing a lot of their material exclusively from China and 35% of their chip sales are to or through China (read the 2022 annual report for all details).
Also, China apparently lets the clock run out (see Intel / Tower) instead of explicitly blocking the deal.
US government will not intervene as they don't like these large deals, but didn't say anything due to the embarrassing court loss in the Microsoft / Activision challenge.
VMware's China business is small enough it can be shut down without material impact. Broadcom's China business (both supply chain and as a customer) is so critical that Broadcom would cease to function without it. They say so in their annual report, after all.
@lqe+1pkljWXA "Deal got approved long time ago"
Why is there no announcement or anything on the news?
what's so secret about it, if they got China approval?
That’s why closing date is October 30th and no news of China blocking deal has been confirmed. Media came out with BS fud just to plant the idea. Nobody said China was actually gonna block the deal. People assumed they would just block because US blocked them from getting a couple chips. This is a software acquisition. If China stopped this deal it would question china’s legitimacy on weather their stopping deals for legitimate reasons or for political reasons. Hock Tan isn’t showing his confidence for no reason. He knows he will pull thru with approval like Microsoft activision. “China's State Administration has approved Microsoft's attempted $69 billion acquisition of Activision Blizzard, joining a total of 37 regulators including the EU and Japan.May 19, 2023” Hock will pull thru. This man changed my life financially and career wise after transforming Broadcom into what it is today.
https://www.bloomberg.com/news/newsletters/2023-10-28/bloomberg-new-economy-china-s-salvoes-spur-new-focus-on-geopolitical-investing?leadSource=uverify%20wall
@lqe+1pkljWXA "Deal got approved long time ago"
Why is there no announcement or anything on the news?
what's so secret about it, if they got China approval?
Deal got approved long time ago. 1) Broadcom
Would not be wasting their time sending out offer letters right now and have people trip out . 2) hock tan wouldn’t be talking so confident and co--y on earnings calls like that if he wasn’t sure or knew something. 3) you don’t have Broadcom board of Directors purchase millions of AVGO stock the month before acquisition is set to close. They couldn’t possibly know anything could they? 🙃
After the way VMware management have behaved, I literally could not give a sh-t anymore and I am focusing my attentions on getting as far away from these cancerous companies as possible.
Three options simply
- Get approval and VM got delisted on Monday.
- Ignore China and proceed with the close on Monday as planned
- File for extension and continue working with China for approval. In that case, VM stocks will start trading again with huge volatility.
Looks like China is not approving the deal.
What will happen to vmw stock on monday?
It is still mentioned as going to be suspended on oct 30th.
https://www1.nyse.com/corporate-actions