Thread regarding VMware layoffs

Hindenburg Unveils Short Position In Icahn Enterprises, Says Company "Inflated By 75%+"

https://www.zerohedge.com/markets/hindenburg-unveils-short-position-icahn-enterprises-says-company-inflated-75

Icahn owns "in the hundreds of millions of dollars" of Vmware stock, and is considered the 2nd highest holder of stock, behind M Dell.

If Hindenburg is right, then Icahn's IEP is over-leveraged. Which means he may need to sell some stock to de-lever. And what better stock to sell then VMW, which hasn't made him any money in a year, and might likely fall due to regulatory concerns?

Icahn is a ba----d but he's not stupid. If the merger is not approved, watch as Icahn sells and sells big. From what I read, he acquired most of his VMW years ago, average of about $100. So if regulators deny the merger, he's not going to hodl, he's going to sell and he's going to sell all of it.

by Anonymous
| 2211 views | | 7 replies (last May 3, 2023) | Reply
Post ID: @OP+1mq47JtY
Comment! It's anonymous!

7 replies (most recent on top)

“Hindenburg” and “VMware” in the same sentence just feels right.

by Anonymous
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Post ID: @1bgg+1mq47JtY

Where are those billions coming from? Bloated hypervisor renewals? That’s all VMware really has; everything else is just creative bundling with other terrible portfolio products gained by acquisition. Keep rearranging those chairs on the deck though…

by Anonymous
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Post ID: @1wbo+1mq47JtY

The fundamentals of business are F’d…

by Anonymous
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Post ID: @vza+1mq47JtY

Icahn has a big red easy button right in front of him, instead his is a sell button. I'm sure M Dell has one as well. It's gonna be whack a mole time soon. Hang on!

by Anonymous
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Post ID: @zyx+1mq47JtY

"The fundamentals of the business are strong. Yes, it is not growing but the billions will keep coming for the next decade...

The folks at Citrix thought this too...and were being told this ad nauseum by the rah-rah crew led by ex BCOM guy Tom Krause and the folks at Elliott and Vista. Credit Suisse (RIP) struggled with BoA and Goldman to offload the last of the financed debt from that horrible deal. Citrix today is hemorrhaging employees, partners, and customers - most importantly it's ARR customers, many of whom are opting to not pay the higher prices and forced subscription model, and are looking for exit strategies from their current deployments.

by Anonymous
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Post ID: @qzt+1mq47JtY

"The fundamentals of the business are strong."

It's sweet that you think that, but it doesn't reflect reality. Fundamentals don't matter to Msrs. Dell and Icahn. They want cash. They want to sign the deal with a big golden pen and get their pictures taken and their arses kissed for their incredible business acumen as they through another billion on the pile.

They don't wan't a business with good fundamentals. They want to cash out. They want to move on. And if the two biggest owners want to move on, they'll do so. They will sell to a financing company like Bcom. And that financing company like Bcom doesn't care of we virtualize servers, make lollipops, or grow tangerines. They just want to make money.

So a financing company like Bcom will happily buy Vmware and strip us for parts. And Dell and Icahn will happily do so, as long as the money is there.

I know you care because you work here, but they don't. To them, it's just a business.

by Anonymous
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Post ID: @jas+1mq47JtY

It's ok. Let him sell all of it. We've seen the stock go to $45 and recover to $200. The fundamentals of the business are strong. Yes, it is not growing but the billions will keep coming for the next decade.

by Anonymous
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Post ID: @amy+1mq47JtY

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