Is there any update on China approval?
How can the deal close on oct 30th with China approval?
18 replies (most recent on top)
The deal will only close when Hock agrees to write 100,000 fortune cookies by hand, no repeat fortunes.
"The close date will be extended (till late November). We will have another month of speculation."
The outside date was already pushed to November like back in August... 30 Oct was just their wishful thinking best case scenario date. Contractually irrelevant.
@wcu+1pjDrmfw Living in delusion land. Must be easy to wake up and be this stupidly ignorant to how the world works. You didn't even read that article you posted. China is no innovator in technology and relies heavily on outside chip demands. They can barely cover a quarter of their own needs, let alone having the ability to advance and make better chips. Sure many countries are spinning up chip manufacturing but that's years out. The post you quoted gave you several examples that the takeovers were delayed and fell through, are you really this stupid to think countries don't need Chinas approval when a bunch of their money comes from China? You know nothing on this dealing and just enjoy taking the massive L.
I am satisfied with gloating about how wrong you are at a later point in the future. Unfortunately, the burden to bear will be my own, but someone will have to say "told you so".
Just focus on the main thing. All is well.
ALL IS WELL!
@wcu+1pjDrmfw Living in delusion land. Must be easy to wake up and be this stupidly ignorant to how the world works. You didn't even read that article you posted. China is no innovator in technology and relies heavily on outside chip demands. They can barely cover a quarter of their own needs, let alone having the ability to advance and make better chips. Sure many countries are spinning up chip manufacturing but that's years out. The post you quoted gave you several examples that the takeovers were delayed and fell through, are you really this stupid to think countries don't need Chinas approval when a bunch of their money comes from China? You know nothing on this dealing and just enjoy taking the massive L.
Now with the latest rounds of Chip sanctions to China, they will not play ball.
What is the impact of the "latest rounds of chip sanctions" in china?
That $12B/yr in chip revenue... any impact?
Meanwhile in China, they're spending $200B to replace dependency on foreign products. In other words... they've already stopped buying chips from the US.
https://www.tomshardware.com/news/china-speeds-up-replacement-of-western-pcs-and-other-tech
There's no further business to be done in China. China is closed for business (at least to foreign businesses).
Hard pill to swallow.
Just because VMware is a software company and not a Chip company, doesnt make it exempt from Chinese regulatory approval.
You keep complaining about chinese regulatory approval. "Broadcom HAS to get china's approval. "
NO. THEY DO NOT NEED CHINA'S APPROVAL, AT ALL, EVER! Nobody is being forced to get ANY approval from China.
They ONLY need China's approval, if they WANT to DO BUSINESS in CHINA.
Let's just be clear about that.
China delayed the Qualcomm and NXP deal. Had Trump not blocked the Broadcom takeover of Qualcomm, it too, would of faced a similar delay with China. They also delayed the Intel and Tower Semiconductor. All these companies have significant dealings with China and a large portion of their revenue comes from it. Just because VMware is a software company and not a Chip company, doesnt make it exempt from Chinese regulatory approval. It's been like this the last 5 years where China just delays any aquisition that could strengthen US based Chip companies. Now with the latest rounds of Chip sanctions to China, they will not play ball.
The close date will be extended (till late November). We will have another month of speculation.
IMO China will not approve the deal. Similar to Intel as that hurts the US. BC cannot just split off VMware in China and run it separately, they closed that loophole. The fines and risk they take upsetting China is too much. Face is everything in Asia and China will not forget if BC moves forward with this. Ultimately the deal will lapse. Don't celebrate too hard this weekend.
PC maker Dell has decided to stop sourcing the chips used in its products from China before the end of 2024. As Nikkei Asia reports
Hock and Dell are probably trying to catch up with Wang Yi in US and hope Blinken/Biden can help persuade the Chinese foreign minister to approve the deal.
The conversation would go like:
Hock/Dell/Blinkin: please approve broadcom's aquisation of VMW. It will help American companies, Hock will do amazing things with VMW and Dell can cash in his Billion.
Wang Yi: what is in it for China?
Blinkin: we will allow BC to sell you their chips, but keep the ban on their advanced and AI chips. We tried to cripple Huawei a few years ago and now want to stop your AI/ML advances.
Wang Yi: Thank you very much, we will think about it and let you know when our review process is over, most likely never.
Just watch the stock price. Now people can expect to get 142.50 if the deal closes. Most people can't trade if they made the election. But if the stock goes down from 142.50 then the market is betting that the deal won't go through.
Previously people could expect a payout of 180. Average of 140 and 220.
Not sure how long they can restrict people from trading. Since the volume is low the price action might be muted.
But due to severe lack of info the stock price is the only reliable signal.
Easy to be a jerk when you are anonymous, do you feel better now?
They're not wrong. How would anyone here know this? Some people want every little bit of information spoon fed to them. Why not be a jerk.
“If authorities do not want to approve a transaction, they prefer to extend the review process repeatedly until the parties lose patience and give up.” Financial Times quoting a Chinese anti trust expert.
Broadcom will just pay a fine to China for being noncompliant and move on with the deal closure.
“do like everybody else”
Easy to be a jerk when you are anonymous, do you feel better now?
No approval.
Do like everybody else, check the f*** news.