What compelling reason does China have to approve this deal quickly? Especially right after Biden just banned AI chips?
15 replies (most recent on top)
Broadcom can always grease a handful of Chinese officials but it would look to obvious. Too many eyes on this one. Still one wonders?
Michael Dell and his Private Equity buddies are the ones really squirming. They're eager to unload VMW ASAP. Can't blame them, given the recent financial performance.
China is probably enjoying all these headlines that show they wield so much power. So my guess is even if they will ultimately approve, they’ll delay it for as long as they want to just to make HT, MD and WallStreet squirm
Hock knows how to su-k a Chinese dïck.
The deal will go through.
There are 4 possible options/scenarios -
- BC moves ahead without the Chinese government's approval. This is highly unlikely as this may lead to punitive actions against BC. You can not lose 40% of your revenue.
- BC moves ahead with the acquisition in all other countries except China. This scenario can only happen with the tacit approval of the Chinese authorities. Without an approval of this plan, BC may pi-s off China. You can not lose 40% of your revenue.
- BC pushes out the acquisition. This may depend on some feedback from Chinese authorities stating that approval is coming shortly. As others mentioned, this option is unlikely if it is indefinite.
- BC cancel the acquisition. This may/may not happen in the next few weeks. This is contingent on exhausting all options 2 and 3 (and others that may have been missed)
Delay is China’s preferred tactic. They rarely reject. They will keep extending their delayed decision if they don’t want the deal approved
What I ve read in the news is delay, the news never said that China will stop the acquisition, why so many negativities ... why does one make China the bad guy ......we dont know the final outcome yet.
China has caught on to the decoupling workaround. They’ve recently put measures in place to discourage that. If BC does that they will put all their future acquisitions in serious jeopardy. You never want to make the Chinese feel they were tricked. They have a long memory. I know coz my I am of Chinese descent.
They will decouple the Chinese entity.
BC has experience with every country on their buys in a long history.
Hock only failed with Trump.
China should be conscious on economy policy.
And exactly how will he " get it done" by the 30th? Just spitting that out minus details doesn't mean much.
None. And if this is related to the ban on chips, it has nothing to do with VMware, hence it is completely unfair.
This is a new challenge for Hock. Raghu will do nothing but Hock will get it done on the 30th.
there is no way China will approve it quickly.
the only uncertainty is is how much risk bc wants to take. i bet bc will postpone the deal.
It's simple. You should follow their rules and should not anger them if you want to do business in China