For those who hold VMW stock and want to know what AVGO is actually going to pay when the sale closes I put together a simple formula to plug into a spread sheet. When the announced sale was made the $142.5 VMW price was based on the the values of the day of announcement. If you really want to know how much you'll get, you need to track the AVGO ticker price, not VMW, given you'll receive 50% of the sale in AVGO stock.
How much will you get today from the sale? (9/1) $132.91 per share
=SUM(71.25+(0.126*x)) Where x= current AVGO price $489.91 as of 9/1)
So currently not the $142.5 announced.
However still better than the $114/share currently what VMW is trading for today.
IF AVGO drops to around $340 then our VMW stock will be worth less than the $114 price today. Curious to see if anyone is planning to dump their VMW stock early based on the current market?
6 replies (most recent on top)
On a slightly related topic. I was awarded new RSUs in July where 1/3 vests in March 1st 2023... if a layoff or spinoff happens prior, what are then odds they would accelerate those RSUs?
the first post is not correct. It's not a combination of both. As a shareholder you got to elect what you want. As the previous author wrote either $142.50 in cash or 0.2520 of AVGO stock. You will receive a form from your broker where you can select that.
Since Silverlake and Dell do own 50% of the shares they will adjust accordingly. Therefore they will be able to match the deal to make it 50% cash and 50% stock.
Hope that brings some clarification to the discussion.
VMware shareholders will elect to receive either $142.50 in cash or 0.2520 shares of Broadcom common stock for each VMware share
Is this not a choice we make on closure?
Thanks for this post!
Holding for now.
Selling at 141. Dont want to deal with any of the BS.
I’m buying as much vmware as I can, I believe in Hock!