Thread regarding VMware layoffs

It seems that Broadcom can just pay a fine to China and the deal goes through.

Those statements were made by Hock before Biden said no to high end chips being sold to the CCP.

China won’t roll over easily, but Hock knows how to deal with the Chinese govt better than most.

Popcorn time.

Read the entire statement:

"We have received legal merger clearance in Australia, Brazil, Canada, the European Union, Israel, South Africa, Taiwan, and the United Kingdom and foreign investment control clearance in all necessary jurisdictions."

"Legal merger clearance" and "foreign investment control clearance" are two separate things. His statement about necessary jurisdictions only applies to foreign investment control, not legal merger clearance.

He covered his a-s with that statement and when he refused to say any more about it he was being very smart.

I take his response and his admonition to re-read his statement on this as the deal will go forward with or without China's approval. He said, "The deal has won foreign investment control clearance in all necessary jurisdictions." I'm no English major, but I think the inclusion of the word "necessary" in that statement means the approvals already obtained are sufficient for him to move forward. I believe this statement means China approval would be nice, but it is NOT NECESSARY.

His response was convoluted where a simple yes or no would have sufficed. Investors looked at that statement and saw it as " I don't know". Hence the drop in stock value.

Hock Tan is very good con artist. Nobody knows if China's approval is required even after his explanation. It's simple yes/no question and he answered, but nobody knows yet.

Here is the summary; Hock will get it done and he doesn’t want you to know how.

It's a non-answer response. Yes, Hock does need China's approval. If not, they wouldn't be asking for it. They would just do it later if they wanted. We're already seeing delays in offers. Possibly up to 4-6 weeks after end of BC fiscal year. China isn't stupid, it's not like they will see BC operating in China and go along with business as usual. China can buy other products than BC. BC cant find another China. We already have sufficient proof with Intel and other companies where delays from China approval prevented the deal going through.

if so, why can the news on China approval impact stock price so much?

It's just ironic timing.

The VMW stock is resetting to $142.50 simply because there's no longer any time to settle new trades by the election deadline. You can't buy VMW stock, have the trade settle, and still elect AVGO stock to get the better conversion. If you do not make an election, the merger document declares that unelected stock will get the all-cash option of $142.50.

So anyone buying VMW from this point forward should be doing so for less than 142.50, assuming the deal closes and if they want to make money.

AVGO stock is falling slightly because it's predicting the profit taking after close of acquisition. It will either dip or skyrocket. Market seems to think dip right now. They're also 50/50 fearful of the deal falling through according to one report with unnamed sources. The market still puts AVGO at a target of around $1500, so by that measure it's on sale.

if so, why can the news on China approval impact stock price so much?

The keywords here are "all necessary jurisdictions"... It implies China is not necessary to close as they probably have a Plan B for it.

@@gpg+1peXNxfD I think the "main thing" joke is overused. Find something else. Its boring.

These guys are good at answering questions with cr-p.

If we think it through/read it through, will we finally uncover the main thing?

his answer is "ask that you think it through, read it through"...

What does that mean? Does he get china’s approval or no? Or he thinks he doesn’t need china’s approval?