But wait, how can this deal close if Russia hasn't approved the acquisition?
What happened in late July 2018? Broadcom pulled out of Russia, even when they had no export restrictions or sanctions requiring them to do so.
https://www.reuters.com/article/us-usa-russia-sanctions-tech/sanctions-blamed-as-silicon-valley-firms-wont-ship-some-kit-to-russia-idUSKBN1KH1TC
A few weeks later, they announce the acquisition of CA. The market did not enjoy the headlines.
https://www.reuters.com/article/ca-ma-broadcom/what-the-hock-broadcom-shares-sink-on-shock-software-deal-idINL4N1U83RX
A few years later, they acquire Symantec. Great move... btw...
https://investors.broadcom.com/static-files/af501b6c-cef2-4ce5-acc6-de4e8465b426
A few years later, they Acquire VMware.
And how is the industry responding to China?
By pulling out of china.
https://www.nytimes.com/2022/09/01/business/tech-companies-china.html
https://www.firstpost.com/world/tech-companies-continue-to-abandon-china-and-why-its-good-for-india-mexico-and-vietnam-12365352.html
https://www.barrons.com/articles/tech-exodus-from-china-accelerates-these-emerging-markets-may-benefit-7f965392
https://www.businessinsider.com/companies-leaving-china-diversifying-supply-chains-apple-tsmc-mazda-2023-6
and the list continues but I won't bore you since nobody reads the links.
List of companies no longer doing business with russia: https://www.cnet.com/news/politics/companies-that-have-left-russia-the-list-across-tech-entertainment-finance-sports/
It turns out that Hock Tan was ahead of that curve by many years.
And things are fine.
He will not wince or lose a minute of sleep over China's feet dragging. The question is... will China fold and approve the deal to make it easier to steal technology from industry giants? Very possible. Their economy is imploding very quickly right now in advance of their war prep with Taiwan and weak/absent international pressure from the west.
If China gave their complete approval for the acquisition, would Broadcom expect to continue to be doing $11.9B in revenue with China YoY, or is the Chinese economy so destroyed that $11.9B turns into $3B turns into $500M?
https://www.bloomberg.com/news/newsletters/2023-09-01/china-s-economy-is-officially-fragile-could-it-collapse
China's vote to isolate themselves from foreign technology is a game of Russian Roulette. Broadcom doesn't need to play that game. Ruthless leadership. Great deal maker.
I'm more and more impressed with Hock Tan every day. Great American!