We have around 4 working days maybe less with Thanksgiving to close the deal. Right now it's looking unlikely it will close by the deadline date. It's highly unlikely both parties will walk away from the deal, they are too far invested and can't back out IMHO. So if there is a further extension, when do folks think will be the new target date?
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"MS also extended Activision deal by 3 months under same conditions."
Read the Microsoft/Activision merger agreement. It is structurally different that than Broadcom/VMware agreement. It does not contain an Outside Date concept like the Broadcom/VMware agreement does. In their case the parties had the ability to extend by mutual agreement. At the Outside Date, Broadcom/VMware do not have the ability to extend.
Deal will be extended for 3 more months. Wait and watch. Unless there is a Chinese miracle in next 3 working days. Which I doubt because we have already been wished to enjoy Thanksgiving holidays.
For all the folks who are saying they need to renegotiate, it’s a no brainer for VMW board to extend for 3 months with same conditions and BC will extend same terms. MS also extended Activision deal by 3 months under same conditions.
My understanding as well. We've had plenty of reference to the terms on this board, and there is no Easy Button beyond 11/26 and not much supporting news hype leading any one to believe progress is being made.
Sr directors in my org are saying it can get extended to May 2024 and that is a final mark. Goal to close before then.
Not sure where they are getting that information from. The drop-dead date is 11/26. It it has not been approved by then, it’s back to the drawing board.
Sr directors in my org are saying it can get extended to May 2024 and that is a final mark. Goal to close before then.
This time is different, the contract expires on Nov 26 so they have to act well in advance of that.
They will not announce anything until morning of Nov 26, you should know this by now based on what happened on Oct 30
China's use of exit bans leaves Americans at risk of being arbitrarily detained
“I don’t just want to go back,” because officials can “stop you for whatever and you cannot leave,” one naturalized U.S. citizen from Shanghai told NBC News.
https://www.nbcnews.com/news/amp/rcna95264
Lawmakers Urge Biden to Bring Up Issue of Detained Americans With Xi
https://www.voanews.com/amp/lawmakers-urge-biden-to-bring-up-issue-of-detained-americans-with-xi/7355528.html
The U.S. State Department says Texas businessman Mark Swidan, Chinese American businessman Kai Li from Long Island, New York, and California pastor David Lin are wrongfully detained by China.
"If the investment community does not receive assurance by COB today, rest assured this deal is dead"
You mean Michael Dell? He's the majority investment community.
He doesnt need assurances - this will push to Feb 1
Things have changed a lot after US froze the assets of Russia. China is being cautious. This relationship is going to worsen.
I guess we should conclude something next week ...
If the investment community does not receive assurance by COB today, rest assured this deal is dead
The Chinese don't need cash as much as they need the latest NVIDIA GPUs. So, one possible concession is for all these deal stakeholders to collude and illegally bypass the U.S. government sanction by providing these much-needed chips via a back door.
Most probably the deadline will come and go and we will be still discussing wtf is happening.
If there is a reset on11/26, I would guess Broadcom would want to revert back to the 60M deal as it has bloated to over 80M because of AVGO stock performance.
These boards won't be as crowded when the VMW shareholder is looking at a $142.50 per share payout again.
"If there is a way, they will find it."
Interesting option: Silverlake and Michael Dell offer to pay part of the Chinese concession.
Vested interests could motivate them to consider previously unthinkable solutions.
"huge and unprofitable concession to the Chinese"
I bet that "concession" is more likely to be in the form of off the table deal with the CCP for Avgo to smuggle sanctioned chips and equipments to China.
There was a report just yesterday that the Department of Justice is doing criminal investigation of Applied Materials for doing something similar.
And as we know, Hock Tan is such a upstanding man of conscience and morals and a patriot of America that he wouldn't do that right? Lol /s
The contract does not allow for extensions. They'd have to start over. They can do it all over again but China still won't approve. I can't see the BOD of either company agreeing to keep this charade going.
SilverLake are financial engineering experts. If there is a way, they will find it.
"Is the BoD desperate enough?"
How would they explain a ridiculous Chinese cash giveaway to AVGO shareholders?
This act of desperation would be very risky, and potentially damage the AVGO brand.
https://l1nq.com/expected-date
Will the AVGO Board of Directors allow Hock Tan to offer a huge and unprofitable concession to the Chinese that they can't refuse? Is the BoD desperate enough?
Maybe they are. This CEO has invested so much of his time, energy, legal fees, and personal reputation into this deal that he risks everything if it collapses now. Thoughts?
We‘re hearing that Tuesday or Wednesday is likely to be the day, but we heard so many dates already!
They must be working on several alternatives.