Thread regarding VMware layoffs

Dell did NOT close EMC before China approval. It takes a simple Google search to find that fact instead of stating someone else’s rumor. Cmon.

On the positive side, if the deal is delayed we get to throw another failure party on the PA campus.

We can all speculate but probably agree that China can be unpredictable especially when faced with political humiliation. Hence I would not bet that what happened years or even months ago is applicable today, especially when political stakes keep rising. They also like to play the long game. They also don’t want to look weak. Coin toss I would say.

For instance, VMW does not >manufacture or develop products in >China; they focus on sales exclusively

Not true. There are developers in China. Plus partnerships such as vmware on alibaba cloud.

I can't comment on the chip side, but I doubt that VMware could (even if they chose) split out operations in China within the next 10 calendar days. This, of course, would depend on how many changes this would entail.

Poster with the kindergarden analogy here - 3 posts below there is a wall of text arguing that there is few overlap between what BC and VMware does, but isn't it NOT the reason for China's objection to start with ?
It's exactly the lack of overlap, hence broader coverage of monopoly that this investigation is investigating ?

Feel free to keep downvoting me for stating the facts.

Yes.

Except China review doesn’t just factor in vertical vs horizontal merge. It includes broader impact, economic and can also be political. With over 1/3 its revenues from China, will Broadcom really run the risk of angering China? This is political now and analysts are saying it’s now a 50/50 chance instead of 90% chance compared to 5 days ago. If we are to operate as separate entities, China can find plenty of ways to make BC miserable. BC has ambitions to acquire more in the future also, guaranteed China won’t be so keen on approving down the road if BC tries to outmaneuver China.

It is possible to complete the acquisition without obtaining approval from China. There have been numerous instances where this has been the case, with the Dell/EMC merger serving as an example.

Mergers and acquisitions that have faced obstacles due to a lack of approval from China typically involve companies operating within the same industry, where the combination of operations offers substantial economies of scale. For instance, the Intel and Tower merger encountered difficulties as they couldn't operate independently in China because part of their business case relied on merging production facilities. On the other hand, BC and VMW operate in complementary sectors, representing a new line of business for BC. Redundancies in roles for BC/VMW are primarily outside of China, such as in the US, UK, India, and other locations, where production and operations are separate. For instance, VMW does not manufacture or develop products in China; they focus on sales exclusively.

Note for VMware employees: The internal unofficial Slack channel has more relevant information than this medium and people there are not anonymous. Therefore, offering accurate and honest information. Here, there are even non-VMware people who are just "fishing" for insider information.

People keep saying this but no, it is very unlikely a route Broadcom will be willing to take considering more than a third of their revenue comes from china. The rumor that Dell closed EMC deal before chinese approval is not even true. Also china recently made it illegal to g-n jump particularly to stop this kind of things.

Sun is 10 engineers working in the basement of an Oracle data center.

Where is Sun these days?

Can someone explain that it is the case that it can be completely separated.

Is it only me but Broadcom/VMware having a separate entity sounds like situation in a kindergarden where a boy's friend is not wanted to participate in a hide and seek game by one of the "alpha" boys in the group, so that they put a mask on the boy to look like someone else, and they accept him to play alongside ? And especially with China having 5+bn $ worth of revenue being one of the alpha boys. What am I missing here ?

I hope all of the execs are now experiencing sleepless nights and stress over this. They deserve it for putting all of us into this situation over the past year and a half. Maybe the model of behaving like locusts and stripping companies clean isn't going to work anymore.

someone mentioned this in the slack, Intel/tower was a pure semi vertical merger, it didnt make business sense for them to operate as a single entity without China.

The China-US feud was already bad 5 years ago, so if they approved IBM/RH AFTER rejecting Qualcomm/NXP (another semi merger) then bcom can still possibly get through

If they don’t get acceptance then people can’t buy VMWare AI chips in China

I don’t think it is easy considering the tension between US and China these days. Look at the recent failures.
Qualcomm tried to merge NXP but gave up due to China. Intel wanted to buy Tower but failed due to China.
BC can’t go through the acquisition without China’s approval.

There was no AI chips ban then. It was pure business transaction. No trade war.

Here is the timeline.
July 9, 2019: IBM completed the acquisition of Red Hat. In the United States and many other regions, the two companies began to operate as a single entity immediately after the acquisition was completed. Red hat stock was delisted.

January 2020: In January, IBM announced that it had received all the necessary regulatory approvals for the acquisition, including from the United States, the European Union, and Brazil.

If it is so easy, why the stock price dropped so much, and barron thinks only 50% chance ??