I don't know why people are stressing over the possibility of the Broadcom deal not going through. You do realize that's a good thing for us, right? Thousands of employees who were slated to be laid off due to the acquisition will still have their jobs. Why is that a bad thing for some of you?
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The damage this process has done is not reversible. Many people have self-selected severance and found new jobs. Many people who didn't get letters have found new jobs. Over the last 18 months, engineering has seen a cumulative 20%+ attrition with very few backfills. In many cases, the talent that left is the talent we would want to keep. I've seen critical Staff+ engineers who prop up entire areas of a product walk out the door.
VMW can recover over time, but calling it a good thing for the deal to fail is absurd. The financial ramifications and loss of value in the company will cause more poaching and attrition and I would guess more layoffs than would otherwise be necessary.
HAHAHAHAHAHA
ok OP. thats not how it works, but ok.
VMW has spent the last 19 months with almost no layoffs of any size (compared to every other tech co...
VMW was in the 80-90 dollar range when this was announced. Our price is based off the deal. If no deal, our value drops 30-45% easy.
If you think you are going to to back to petting turtles and hanging out at 10am with your friends drinking coffee if this doesnt go through, you are sadly mistaken.
If it doesnt go through, a lot of ELT will be gone. Then those remaining and the new folks will "restructure" and right size...
Call me and tell me how that goes.
the OP has a child like view of the business world.
This deal needs to go through so I can get my $150k and start my new job.
Will su-k to lose my severance because this useless Chinese hot air balloon has no power to deliver
LOL…two people just quoted and cited the exact same thing at the same time…how’s that for validation?
"When and where did the leadership team say they will sell to someone else? If you don't have verifiable, reliable source, don't spread misinformation "
It was said repeatedly and clearly by sr. leadership on a most-recent AMER all-hands call. Thousands were on the call so it can easily be verified.
“ When and where did the leadership team say they will sell to someone else? If you don't have verifiable, reliable source, don't spread misinformation”
^^Mike Gannon specifically said as much on the AMER all-hands call last Monday, 11/6. If you are a VMW employee, go find the recording and see for yourself. Whether one agrees with that or not, he said it.
There is a hero story to tell of how VMware would be crushed by Tan but held him off and now we're back and stronger than ever.
This is the most delusional comment ever made here. Magoo, my hero. The resemblance to Braveheart is astonishing.
Once Magoo repels the barbarians at the gate, he will adjust his glasses and
Make VMware Great Again.
Yea, sure.
@sva+1pBMWjCd I agree with your observation. That "stickiness" is what attracted Hock Tan in the first place.
@kfn+1pBMWjCd When and where did the leadership team say they will sell to someone else? If you don't have verifiable, reliable source, don't spread misinformation
Look at the financial engineering history of SilverLake and Dell. They volunteered to pay a 1B fine for their deal back in 2018 when Dell went public. They did that since if it went to court the fine would have been much more. And the third part in this deal, BC is also a SilverLake creation.
https://www.channelfutures.com/regulation-compliance/dell-technologies-to-pay-1-billion-settlement-to-investors-over-2018-stock-swap
These guys will figure something out, deal or no deal. We are the meat in their abattoir.
Dell was hands off for a while, not anymore.
Papa needs even more money since $69 billion isn’t enough.
These folks are the scüm of the earth, and I’m out now. I can’t work for big tech vermin.
I have employment options, and if you do too, I suggest you take them or start prepping for a new tech career. Every day you wake up and do your job you make these “kings” even richer and boost their above the law approaches.
It’s already been confirmed by leadership that if this falls through they’re going to sell to someone else. So it’s nothing to really celebrate if anything it’s making things worse because we’ll be starting this whole process all over again with another company.
Given the damage that Hock Tan has already done to the VMware brand, we have to anticipate layoffs due to more customers planning to abandon our products. Cost cutting is inevitable now. AVGO deal or no deal.
I think you're underestimating customer laziness in shifting infrastructure. There is a hero story to tell of how VMware would be crushed by Tan, but held him off and now we're back and stronger than ever. Customers who didn't want to put the effort in to transition away, and were waiting on results, would respond quite positively to that. Savvy customers know that they'll have the upper hand in negotiations for awhile, and more will jump on.
IF the deal falls through, we will get the same layoffs minus those that were for duplication (HR, Legal, IT, etc.). They’ve spent too much time, money, and effort in planning for VMware’s future to toss it all aside. The BUs will still be collapsed. EUC will still be spun off. Michael Dell will push to streamline the company to make it attractive to a buyer. One way or another MD is getting his $21billion.
"Thousands of employees who were slated to be laid off due to the acquisition will still have their jobs."
Given the damage that Hock Tan has already done to the VMware brand, we have to anticipate layoffs due to more customers planning to abandon our products. Cost cutting is inevitable now. AVGO deal or no deal.
VMware is Novell 2.0. Its cloud efforts have failed completely. It has decimated it's ranks over the past 5 years. The best and brightest are all done. It cannot survive as-is any longer. It will be carved up and sold in pieces if Broadcom does not go through.
How is deal not happening any better than deal going through? VMW needs same amounts of cuts for company to grow. Every org is bloated. Specially Ops. Leadership su-ks. At least lot of us knew we were going to be out of the door if deal went through. If it doesn’t go through than it brings more uncertainty. Obviously there will be $ loss but more significant will be loss of trust in leadership. We were left out to be laid off and folks they chose to stay prompted everyone to question their motives. Now who wants to work in such a toxic environment?
We will all still keep looking and we will leave as soon as possible. Maybe VMW layoffs might beat us to that. On the flip side how will VMW convince engineers to continue after they saw the $$$ that was offered by BC? VMW will need to do another big round of retention RSUs to those engineers to stay put. End result is there will be same amount of chaos and heartburn. Anyone who thinks it will all go back to normal is naive and living in a fantasy land. Actually there is a high chance that we will be sold to another PE without exposure to China etc. Chopped up and distributed. Maybe BC will come back to buy the juicy pieces.
Leveraged Buy Out doesn't work with high interest rates. The deal is from a different era when the Fed funds rate was 2000% lower.
There will be things that needs fixing, but probably not as much cuts as Broadcom would do. As of today VMware is a profit making business, Just that MD found a shorter way to success, could potential become the chairman of Broadcom, if everything works out his way, so he took it.
As for VMware, I think we will be fine, but adjustments have to be made, Sure stock could take a hit, but will recover. Hope somebody will twist MDs hand and make his sell a decent portion of his 41%, One of the reason VMW won't move with market, is due to low float in the open market.
As, for OP's post why some people are considering it is a bad deal, well they started counting their RSU covered to AVGO and started pricing in AVGO current price at about 1100 AVGO they were looking at 100% bump, not predicting AVGO will be 1100, but saying at that price they were looking at 100% increment in value.
The range for vmw has been 50 to 200 from 2010. After the announcement of the deal it never came close to the all time high. Credit rating of vmw is BBB. Will be cut to BBB- if the acquisition goes through. That's because of BC has higher bankruptcy risks.
Queue in armchair financial analysts who's so convinced the stock will tank aster the deal fails and there will still be same level of layoffs without considering change in VMware fundamentals and market conditions since mid 2022 in 3..2..1..
Probably people who took out home equity loans to speculate on the arbitrage of the deal. Now staring at loosing their home?