"Broadcom’s Tan believes the hold-up is due to bureaucratic reasons, not political considerations, according to CNBC’s David Faber."
Does he really know its due to bureaucratic reasons? Or just another lie?
https://archive.ph/LSlJI#selection-2151.3168-2151.3292
Yea, he lied. BAU
One of the most important jobs that a CEO has is to project both confidence and assurance. So obviously HT isn't going to go out there and even hint that the deal might be in peril and for good reason: Because if this deal falls through then it will be the second huge deal to fail for BC. And if it does then it throws a massive wrench into their entire business model. Remember: BC shifted away from buying hardware to software after the failure of the Qualcomm deal. So if this also fails then their business model is more or less broken and buying their way to growth isn't such an assured thing.
Can't say that I am exactly sorry for them due to the amount of stress that this has put on the 1000's of VMW employees over the past year and a half.
that's why they buy VMW ^^
The future is AI, not legacy virtualization software.
The future for BC software is legacy virtualization.
They bought the mainframe biz from CA.
This is what they do in software, make money on legacy tech.
Geopolitics mixing with my job, what could go wrong?
I 100% believe Hock, he will get it done. Watch.
"according to" - says it all, not a quote but purely speculation.
Why is everyone missing the point?
Sanctions do what?
They stop business from transacting. They stop profitable chips from being sold to China.
Can China approve away sanctions? No. They cannot. Will Broadcom get the international community to drop sanctions if only China approves the deal? No.
So what leverage does China have?
Broadcom cannot, under any scenario, sell advanced chips to China.
Ever.
At all.
And cloud software is the next restriction going into effect.
So tell me again how much leverage China has over broadcom and why broadcom needs to care?
They’re positioned to make $0 from China in every scenario. You can’t just imagine that this $12B/year money train continues and then proclaim China has all this leverage.
All good arguments about the leverage China has. So let’s think of the other side as well. Does Hock have any leverage over China? Yes he does. Where does the $12B worth of stuff that he sells in China go? Into all the electronics that are manufactured there. For all the folks who say good luck doing business in China if he closes the deal without approval, what will happen next. China bans BC and that will stop all electronics manufacturing. If it was so easy to swap out BC HW out of products then Chinese would have already done it. It hurts China as much as it hurts BC if they take action against BC. So HT has some leverage too.
How do you know a CEO is lying?
His lips are moving.
Why would Bcom walk away? They did $12B in revenue (1/3 of their book of business) in China last year. That would be at risk. They would also be subject to a ‘g-n jumping’ penalty of 10% of total revenues, which would be ~3.3B USD, assuming they can still do business in China after flouting China’s regulators. The future is AI, not legacy virtualization software.
Agreed. Concise, rational and to the point. Yes, VMware still has some very smart people. I’m not sure there is another plausible outcome given the circumstances. I’m searching for one, but you always have to come back to what is plausible/probable.
However, because US wants to ban AI chips and powerful GPU chips to China, now China will delay approval because they have power and leverage. Nothing HT says or can leverage will sway China.
That statement contradicts itself. Can you help me understand what Broadcom stands to gain by walking away from the deal vs closing the deal without China's approval? How does china have leverage here?
\/\/…The two longer posts below this one are two of the more informative, factual and cogent posts I’ve seen on here over the past month or so. Thank you.
For all those saying this deal will still go through, you might be right, but you shouldn't feel as confident as you are in that.
with the way they have been treating employees, the amount of stress and frustration we experienced for such a long time, i hope karma comes and bites him in the a-s...
The reason why the closeout didn't happen today is the same 1 reason which he side stepped earlier with the reporter last month. Chinese approval. Without this, there's no aquisition no matter how long both BC and VMware are willing to keep this deal going. He cannot blame China or insult them. His answers are carefully tailored to give confidence but promise nothing. HT doesn't have the power nor does any other Billion Dollar company to bully China.
China doesn't have a bureaucratic issue for approving this deal. It's 2 US companies that they could care less about. However, because US wants to ban AI chips and powerful GPU chips to China, now China will delay approval because they have power and leverage. Nothing HT says or can leverage will sway China. This is strictly corralteroal damage from the cold war between US and China.
China can approve any deal it wants, as quickly as it wants, and delay for whatever length of time they want. To say this is bureaucratic issue is a lie and we all know it, including investors. If Intel couldn't get their Aquisition done, or Qualcomm, or BC with trying to get Qualcomm, they will fail here too. Only helps China keep these companies from getting larger to compete against China
Lying is all hock knows how to do just like VMware managers. There is an affinity there without question. You can't get the good money in this life without selling your soul these days.
If it can lead to more AVGO profit, he clearly will do whatever it takes to regain the trust of shareholders. He has upset a lot of powerful people, e.g. institutional investors and hedge funds, with his cavalier and careless statements to the media.
There are consequences. Wait and see...
What is he going to say, and does it matter what he says? Even if it’s political it would only hurt both companies to admit that until they’ve terminated the deal. This is the least of his lies if he really wants to close it.
Smoke mirrors lies. That’s all we have been fed from both HT and our leaders.
Managers saved themselves and their favorites. People who went to club and who sold a sh-t ton not getting offers. Family members and friends getting offers who have no experience
HT continues to lie to save his Chinese face and it’s all going to come crashing down
This whole thing and who has been left behind is Crooked and nepotistic af