Thread regarding VMware layoffs

"Wall Street and institutional investors will influence the decision on Monday, when the market opens."

So true, and Hock will follow their lead. He will abandon the deal if it impacts AVGO

More concerned with when than how.

They didn’t predict US China politics from day one at this level. I can’t help thinking it will go through as well but ‘how’ is the key to unlocking all this

The deal will go through on 30th. They predicted this from day one.

What the heck is going on with WW3 guy? They need to move over to /r/conspiracy on Reddit and leave the adults to discuss AVGO/VMW here.

One or two people and a few upvoters seem to be underestimating the impact a global world war 3 and a new axis of evil would do to the world's economy.

As part of the closure of Broadcom/VMware, AVGO will issue a largely awaited "Reality Check" to the world to buckle up and focus on the main thing.

The deal will close. It will soon be a very ugly world to live in. Prepare for the draft, you won't be unemployed for very long. Win/Win/Win.

Wall Street and institutional investors will influence the decision on Monday, when the market opens.

Hock will watch how the AVGO and VMW stock are impacted by this crisis. Remember, AVGO has a Private Equity business model. It's all about assessing the profit implications.

No other issues matter to Hock and his majority shareholders.

I agree, the outcome is likely to be similar to the Qualcomm situation. Hock will accept defeat, pay the negotiated settlement price, and move on. The only alternative is very problematic for AVGO, no matter how you try to put a positive spin on it. Game over...

As previously stated in a prior post, the $1.5bn termination fee isn't a gating factor for AVGO to decide on the next steps. They can negotiate a settlement with VMW lawyers, just as they did with Qualcomm. Termination will conclude privately thru legal channels.

I’ve read everything there is to read on this and there are two areas of comment. The business publications are all saying that this deal can’t proceed without China’s approval. Then there are the comments that something like a third of AVGO’s revenue comes from China $11bn which he could be fined on. Then there is the $1.5Bn that Broadcom would need to pay the shareholders if the deal doesn’t close is this falling into which outcome is worse for Broadcom, the fines or the $1.5Bn payout? Could it be a fine and then another $1.5Bn payout if China doesn’t approve. We are then back to whether Broadcom need China’s approval…

The deal will go through. Seat and watch the game.

https://techmonitor.ai/leadership/finance-and-procurement/broadcom-vmware-china

Broadcom caught in US-China trade war… again
This is the second time in five years that Broadcom has been caught between US and Chinese tensions. A previous attempt by the then Singapore-headquartered chipmaker to buy rival Qualcomm was blocked by Donald Trump on national security grounds.

Broadcom has since moved its headquarters to the US but President Joe Biden’s increasing restrictions on US-China tech deals appears to have put the company at the centre of the tensions once again. Chinese authorities are putting US companies operating in China under increasing scrutiny, including raiding the offices of some US-owned consultancies.

What isn’t clear is whether the deal between Broadcom and VMware can still go ahead even if China refuses approval. The company has declined to address this issue but with $33bn of revenue generated in China last year, Broadcom will have to take it into consideration. While VMware doesn’t break out its revenue in China, executives have previously described its position in the country as “robust”.

Any business generating at least $55m in China has to get approval from the State Administration of Market Regulation if they wish to merge with another company. Failing to do so could see both Broadcom and VMware excluded or fined if they continue with the merger without approval.