Block Acquistion and Broadcom can stop selling a few billion in chips to Chinese companies. Those few billion make up hundreds of billions in sales. It’ll hurt China more than it’ll hurt Broadcom. The deal will close on the 30th as planned.
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Agreed that China holds all the power. Just ask Jack Ma what happens if you try to stand up to them.
Patience… ancient Chinese secret.
And lose 1/3 (~$10B) of it's total annual revenues (~$33B)? I think not. Also, he needs VMware - or any software/cloud services company acquisition for that matter - as an alternate source of revenues through recurring software & services revenue to hedge against the potential future precipitous drop off in revenues relating to it's deal with Apple for its hardware, which although delayed for now, will very likely eventually happen. China holds all of the cards here - at least in terms of its decisions relating to its own markets and economy no matter how flawed or illogical they may seem to any of us outsiders. Many moves by China in recent years mirrors Musk's attitude towards what he thinks about what other people think about what he says, does and decisions he takes, best summed up by in his recent CNBC interview where he quotes a line from the movie, The Princess Bride: "I don't care." At. any rate, that's my humble opinion and complete conjecture on my part of course. We'll all see what actually happens soon enough.
You are right OP. I think this is the reason that China will approve the deal very soon.
OP LOL China doesn't give a fu-k about BC
If China cares about anyone it's maybe TSMC or ASML, since they're choke points in the chip manufacturing chain. Everyone else is replaceable. Especially a chip designer like BC
Plus, you think Tan's got the ba--s to pull a one man embargo on the CCP.
You seriously think they'll let a private company di-k them around like that??
You think Wall Street's going to be cool, with BC giving up $10B in revenue just like that?
China won’t block the deal.. they just sit on it. BRCM can still sell approved chips.. but it’s a game of chicken now. It is vmware folks who continue to be in limbo… suffer.
even no need to block. just make it pending and review it for years if bc can wait.
The efforts aren’t focused on Chinese companies, they are focused on 13 Chinese companies and the Chinese military.
Lol I love the toxicity of this forum. The reality is BC won't close the deal without the China regulatory approval. China is not dying country anymore than the US is. China will postpone the deal and have BC as their pet. 10B is small for a country but huge to a private company. No they won't be able to make up the difference with VMware sales. Just like the Qualcomm fail, if those doesn't go through, Hock will loose even more face.
Most of them are delivered to Foxconn factories in China for Apple. I would ship them to Foxconn headquarter in Taiwan and let them deal with it.
BC loses 10B. China loses none. Win for China. Cheers!
Nah China can still source those chips outside of China through other countries.