Thread regarding VMware layoffs

“This deal will go through. There are too many mega rich people with too much power who need it to go through so they can become mega rich * 2”

I doubt it, at least not without China's approval, again, 1/3 of Broadcom's revenue comes from China, BC really can't afford to cross China

That is a pretty reasonable sounding speculation.

Biden and Xi are probably meeting at the Asia Pacific Economic Cooperation (APEC) Leaders' Meeting in San Francisco November 12-18. My prediction is that the Chinese will block until then for a bit of leverage leverage, there will be some type of agreement at the meeting, and then China will approve the acquisition. The close will probably happen about Nov. 30.

“This deal will go through. There are too many mega rich people with too much power who need it to go through so they can become mega rich * 2”

That’s the same for any M&A especially of this size.

The entire Chinese government saving face and posturing towards the US way more power than a couple rich guys IMHO

This deal will go through. There are too many mega rich people with too much power who need it to go through so they can become mega rich * 2.

Hock already said that they had all the approvals needed and the NYSE have already said that next Friday will be the last day of trading for VMW.

There is nothing I’d like to see more than Hock having to eat his words at not getting this deal closed on time, but sadly it’s not going to happen.

If the deal gets scrapped (I wish) , then no layoffs, right? Everything continue same aa before, right ?

There may be some layoffs even if the deal breaks (highly likely now).

If the deal gets scrapped (I wish) , then no layoffs, right? Everything continue same aa before, right ?

“Companies like Broadcom do not just jump into an M&A without Plans B, C, D, and E. Especially after what happened with Qualcomm”

You can have a plan a-Z and beyond and cannot control the world governments.

Companies like Broadcom do not just jump into an M&A without Plans B, C, D, and E. Especially after what happened with Qualcomm.

China has backed down in the past. There's no guarantee one way or the other here.

I'm confused as to why some people here think VMware and its leadership have any impact on this decision.

@lse+1paC7j1z what makes you believe China will eventually approve the deal?

@owi+1paC7j1z, the end of their fiscal year. VMW could then terminate the agreement without penalty.;-)

@hrp+1paC7j1z, but they’re not hitting the U.S./Biden with this. The U.S. couldn’t care less about this deal! That’s why we’re stuck with these political shenanigans by the Chinese government (that will eventually budge).

China will eventually budge.

They didn’t with Intel. They will keep delaying until everyone can’t stand it.

Look at this mess they can’t continue into 2024 without this being resolved

@aqi+1paC7j1z, HT would totally lose face if this deal was scrapped, too. Ain’t gonna happen!

Plan-B, operation Soil Your Poopy Pants may commence now. Thank you all!

what is the final date by which Broadcom needs to close the deal?

Almost guaranteed, China at a minimum will delay this. They just got hit with chip restrictions and delaying the acquisition is a low-cost way to hit back at the US.

They probably won't reject immediately as that would look too vindictive. But a delay is a nice passive aggressive way of showing your not pleased.

Imagine if you were the Chinese govt and just got hit. Wouldn't you take the opp to hit back?

Just remember BC gets a 1/3 of their annual revenue from China, can't afford to pi-s them off

IMO, They will not wait past Nov 26 which is the latest outside date. If it looks tied up in China and can't be resolved by then I think deal will be scrapped. They are not waiting indefinitely.

There’s a new movie out.
How to lose a company in ten days lolol

This fiasco is beyond our and BC‘s management‘s control. It seems to be pure retaliation by the Chinese government b/o the ban on chip exports. They are counting on Octane addressing this roadblock with the WH, but why would Biden care about this merger?!
China will eventually budge. This stalemate has nothing to do with VMW. It’s a simple power game.

AVGO is showing relative strength, compared to VMW. The market is telling AVGO to change course

Someone asked the CEO if there was a "plan B" early on, during a town hall. He said, "yes, there is, but we expect to close by Oct 30th."

So yes, there is a plan B.

Town hall spicy?? No - it will be a waste of time filled explore Barcelona and AI and a bunch of topics no one cares about with 3 minutes at the end for a “we have no update” commentary lol

"They must have prepared a Plan B, for situations just like this one.

This is where the VMW VP of Communications earns their salary for their crisis management skills. Nobody can be totally ready for this fiasco. It's time for some serious 'damage control', for sure with investors and other key stakeholders."

Plan B is not a given with this inept management team.
And depending on what transpires over the next week, the Town Hall on the 26th might be rather spicy...

They must have prepared a Plan B, for situations just like this one.

This is where the VMW VP of Communications earns their salary for their crisis management skills. Nobody can be totally ready for this fiasco. It's time for some serious 'damage control', for sure with investors and other key stakeholders.