So BCOM had 5 days to respond to the CMA. 5 days…. They didn’t respond for a reason. They have huge team working round the clock on this acquisition, or they did have a huge team…. They let this slip, but why…
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Just saying interest rates aren’t an issue
“ Hock will just milk the cow even more to make up for it.”
If the regulators even let him. Don’t think they like him that much. They love to fine him though.
Hock will just milk the cow even more to make up for it.
When Broadcom announced the offer, interest rate was at 1% and now at 5%? That’s a pretty big hike on the cost of buying something.
The divestitures are just speculation, though I’m not sure of historical usage of such a remedy. The articles then goes on to downplay such a severe demand
I think Broadcom will have to make some commitments to support third-party NICs, but that's about it.
Hock will swear on a stack of old token ring network cards that he will be a good boy and the deal will go through.
Here is an article discussing Broadcom asset divestitures https://thecapitolforum.com/broadcom-vmware-ftc-staff-sounds-out-third-parties-about-signing-declarations-for-possible-court-case/
They had no reason. They are planning to address the concerns at the end of the phase 2, which they knew was going to happen. Gives them more time to prepare.
“Yes they can”
I admire your enthusiasm.
Yes they can.
Makes sense. Bigger question is can they address them all?
Better to see all the phase II assessments from EU, US and UK and address them all in one go.
Good question. If their concerns are easy to address, why even allow it to go to phase II?
Concessions require giving up Broadcom assets
Where in the UK report
https://assets.publishing.service.gov.uk/media/641adca28fa8f547c68029f6/Summary_of_Phase_1_Decision.pdf
Does it say anything about concessions require giving up Broadcom assets?
It seems like a commitment to a business practice that enforces support for competitive hardware is all that is needed, which is sort of biz as usual for VMware and wouldn’t require Broadcom to divest out of say the NIC market.
VMware remedies are easy to fix. I don’t think Broadcom truly anticipated they’d go after their very own line of business and their hardware assets. Probably why they’re stalling coz they’re trying to reassess if this thing is worth it. EC is yet to give their list, so does the FTC.
Concessions require giving up Broadcom assets,. We already know what he wants to do with VMware, but what is he willing to give up from BC?
I can’t imagine what concessions Hock wouldn’t agree to. All he has to do have VMware continue to be the “Switzerland” of virtualization to appease the regulators and trim off the insane bloat that VMware has accumulated because of mismanagement.
Hock is twice as motivated to close this deal just as the regulators are twice as motivated to stop him because they are fully aware of the wreckage you described. So I say it is a 50-50 chance. Maybe not even.
Look at the wreckage of acquisitions he has left behind for the past.
He has quite likely been working in tech finance for longer than you have been alive. His last deal to acquire Qualcomm was a huge slap in the face to his ego, he isn’t going to flop twice in a row.
He is going to get past appeasing the governments, cause ya know, that is something he actually has experience in. With all the extra time he has to spare while it gets decided, he will be able to put in place a plan to carve up VMware before you can blink your eye.
So they don’t have to pay that 1.5B breakup fee?