https://seekingalpha.com/news/3915419-broadcom-to-face-in-depth-european-probe-into-broadcom-vmware-deal-report
16 replies (most recent on top)
Maybe the EU regulators are jealous of the "teeth" that the FTC is showing with Microsoft/Activision and will use this as their opportunity to show that they aren't a bunch of wimps.
Hock, go take your ball and leave the field please, your behavior is terrible.
Hock might decide to cough up 1.5 billion to get out of the deal
That would be wonderful.
F Hock
I'm not an expert on this, so I would love to hear from others in the know, but this could present potential risk to the deal. But lets game this out
From what I understand Broadcom has to borrow most of the money to pay for the 50% cash portion of the deal. They borrowed at a low interest rate, but lenders only guarantee interest rates for a limited amount of time. If the interest rate on Hock's loan(s) expires before the review is complete, he would have to borrow at today's higher interest rates.
Meanwhile VMware's brand keeps suffering, we continue to lose our best employees, morale and productivity stay in the toilet. Customers also remain motivated to find alternatives to our products.
Hock might decide to cough up 1.5 billion to get out of the deal. Then we are left with a corporation in disarray, and Magoo and the rest of the unmagnificent in leadership. We should see now where we could make some big cuts, but Broadcom scared off our top talent, which are the ones we should have kept, and cut the bottom 20 - 30%.
The cat is also out of the bag on Mike Dell's plans for the company. So at this point with the stock around $70 per share or lower, they start to make cuts, and sell off portions of the business.
If they were smart, they could get some real leadership in this place, to build a lean and mean company. If Hock was willing to pay $61 billion for this place, then we should feel confident that a strategy, that trims the fat, and focuses on what we are good at, could yield significant profits. Its all the fluffy BS, and lack of leadership, that got us into this mess. So lets start by laying off Raghu and the unmagnifcent seven, and focus on what we are good at.
Broadcom to face in-depth European probe into VMware deal. So it is for sure.
https://seekingalpha.com/news/3915419-broadcom-to-face-in-depth-european-probe-into-broadcom-vmware-deal-report
Your "might not" statement was speculation.
“ Just as tech giant Broadcom (AVGO) thought it would move through its $61bn (£51bn) takeover of software company VMware (VMW) unscathed, the European Commission (EC) has scuppered its plans, and it was announced on Thursday that the deal will now be subject to a lengthy probing by the EU regulators”
https://capital.com/broadcom-avgo-acquisition-of-vmware-ec-probe
Whenever you hear "Might" remember that the sentence can also use "might not"
EU might (or might not) go for phase 2.
These articles are all speculation. No one knows until the word comes down.
Magoo has been hearing them news as well.
Hock and Broadcom deserve to be raked over the coals! Before this acquisition I knew nothing about them. Now after months of speaking with former and current Broadcom employees, reading the experiences of real Symantec and CA customers that were totally burned by Hock, it makes total sense that this thing should be thoroughly scrutinized. The only one who benefits from any of this is Michael Dell and the shareholders. Governments need to protect themselves against these types of scorched earth business practices. Everything Hock says about innovation and making the products better is complete horse sh-t. He said all the same stuff about CA and Symantec, and guess what? Now customers are leaving them in droves for the reasons that have been stated here repeatedly. To quote a former Symantec customer, “Broadcom creates legal ransomware”. I hope the US and EU stop Mike and Hock! The only thing good about this is it shined a light on all the waste bloat and stupidity in this company. We could use a good trimming which I hope happens, but not to the level of Hock would do where we completely fu-k most of our customers
Where are the know it all people that posted on other threads that this thing would speed through and the EU would just approve the deal? Please come and explain why we’re all wrong about this again?
If the deal falls through (which I doubt it will) imagine all those employees that didn’t leave yet but essentially went to 0 productivity and moral giving the management all the reason to lay you off anyway. All that bi-----g and moaning I hear on daily basis will change tone I am sure. I certainly get a huge bucket of popcorn and watch.
if it takes so long and vmware keeps showing horrible earnings, Hock might cancel the deal
Woo hoo!
Careful what you wish for
If this deal fails the stick will plummet into the 70s and layoffs will be just as bad
Another 5 months
It is good to extend the close date.