Thread regarding VMware layoffs

Post ID: @xjz+1pEjoTUI

Go read Article X of the merger agreement and reevaluate your response.

To whoever was asking below: Chinas new policy is the if you go ahead without approval, they can fine you 10% of Global turnover. Not just profit in China, not just global profit, 10% of global revenue. Nobody is going to risk that. And BC does about 1/3 of their chip business in China, so there’s just no way this goes through without Chinese approval

What will likely happen next?

The rich get richer.

Who would sue bc? If things are put to a vote among shareholder and two groups (SL and MD) own majority, then what they vote for wins… that’s how the world works. Quit crying and quit if you don’t like it.

@veh - curious, how do you get to $5B (assumably for moving ahead wo Chinese approval)
? Ive seen estimated penalties speculated at 10% of "turnover". That's $1.1B if you look at China turnover ($11B). Is it the Global turnover and not just Chinese?

Question remains, is that S-B Dell going to share some of the $1.5B with the employees who have put up with this sh-t for so long or is he going to do share buybacks to pay himself?

No way employees will survive an extension... Morale has already been taken to the brink.. most are at the breaking point, I think it's Nov 26 or bust.

Out of curiosity - where does that $1.5bn get paid to?

Hopefully split evenly across the business... wishful thinking.. I nearly forgot we are owned by MD..

VMware will be broken up and sold in pieces to PE firms after layoffs.

It is difficult to make predictions, especially about the future.

There is no board meeting to grant an extension beyond Nov 26th. Some folks need it knocked into their heads. The 26th is a drop dead date for this deal. The contract has no provisions for further extensions. After the 26th, if there is to be any further action with Broadcom, a totally new deal will have to be negotiated. New financing will have to be arraigned. A new stock price determined for the purchase. There are all sorts of things that will have to happen IF Broadcom wants to continue.

The only reason BC would want to do a new deal is that they can negotiate away the $1.5Billion charge that they have to pay for this initial deal failure. But that may not be worth it as interest rates are MUCH higher than they were when this deal was negotiated. Buying VMware, even a the same $142 price, is going to be much more expensive for BC.

I guarantee you that Michael Dell already has his plans made if the deal falls through. IMO, either he’s going to renegotiate the deal with BC (assuming they’re interested) or take their $1.5Billion and let the next buyer step forward. If Dell doesn’t immediately have a new buyer, you’ll see layoffs early next year with other measures to make VMware are more attractive purchase target.

Hock Tan will find a way to save face while admitting defeat.

Any alternative ending will require a huge concession to the Chinese government -- that outcome would financially and legally penalize him and all AVGO shareholders.

The U.S. government would not tolerate a China-sanction violation by AVGO.

“The remaining 20% really have no say”

That’s wrong

Bc is about to get sued

It’s anybody’s guess but shareholders are MD and Silver Lake. The remaining 20% really have no say

Broadcom won’t loose anything just will blame politics and move their focus to existing business. This quarter revenue already above 9 bill as committed, so won’t be any big shake to the stock. Other side VMware will be continue to have useless leadership, and every employee enjoy their current benefits as usual.

Next year broadcom all in one ai chip Brain chip will be released, which will boost the business further on semiconductor side

I bet 50 bucks that China will not ever approve. Hock will have to pay 5 billion$$$!!!