I'll be brief.... what companies do you think would be more qualified suitors for VMware?
Broadcom, in my opinion, is a debacle.
9 replies (most recent on top)
Not one said Apple, a better suitor, Basically if you look at the Big 4, AAPL, AMZN, MSFT, GOOG, AAPL is the only one that is missing a Cloud Story.
Not saying they should and are looking to enter the space, but if they were that would be the company, and one that is cash rich.
https://12ft.io/proxy?q=https://seekingalpha.com/article/4515200-vmware-broadcom-deal-lack-of-synergies
vmw is a software company with much lower margin than broadcom, a chip company. that ought to tell you something about the company: it's terribly bloated/inefficient, no matter who buys VMW, the owner won't tolerate continued status quo, and mass cut has to happen, this ain't charity (VMW shoudn't have got so bloated in the first place)
Wake up and smell the roses. There will be no other suitor interested at that price of $140 per share, especially after they review the financials from the most recent quarter, Q1, which was a disaster. Someone in one of these other Layoff threads said that the VMware Q1 was so bad, and maybe guidance was also looking terrible, that the VMware stock would have tanked to $70, if it wasn't for Broadcom saving the day. The best suitors might have been Microsoft, Cisco, Google, Amazon, Intel, Nvidia, Oracle, IBM. But none of them will pay $60B for VMware. They might think VMware is worth $50B.
Problem is a lot of the internal guys have no desire to upgrade themselves, skill wise. Many still stuck in VCentet old c++ world while fellow spent half his day obsessing over 2k size increase in vcenter binary.
@nnf Very much in real world. It's going to be Broadcom, no doubt. But someone asked.
@ytw Nothing but customers who are currently nowhere near where they want to be in their cloud journey, else they wouldn't be running VMware still. That's the point. Any cloud company could have snapped up VMware and paved the migration path with ease and incentives. I just feel like it was a missed opportunity.
Please come back to the real world... I'll be very surprised if there comes another suitor
What Vmw has to offer to cloud companies? Especially AWS, Amazon’s way of doing thing is no less polar opposite of vmw’s rest and vest. Google could be culturally more fit but make no mistake Vmw is at least 2 level out of google’s league. I don’t get how can Vmw folks can fantasize about going to google when most of the staff guys can hack a google L3 interview (oh on culture google cloud specially added behavior interview to weed out bad influence after too many Vmw people joined a few years back) . Tenured Vmw people live in another dimension in term of understanding how current valley works
I always figured one of the cloud companies (probably AWS) would snag it. I'm actually a bit shocked that this hasn't happened by now.