https://techmonitor.ai/technology/cloud/vmware-takeover-by-broadcom-mistake
I agree with the premise of the article, however, why was VMware sold and was it a mistake? There is only one reason and one reason only, Michael Dell and Silver Lakes owned majority shares and they wanted to sell. Sure there were many reason for and against, but that was the only ones that mattered.
So who is to blame - Michael Dell.
hey now, that's kinda anti-semitic.
and that was the attitude of the top executive too, since majority of the shares were owned by a party or two and they can’t be overruled in any board meetings.
So what? They destroyed a company that I loved and a job that was very satisfying. I would have stayed forever... so I just took what they were giving and hasta la vista! Turned out to be a nice break and a decent bonus.
I just hope my next job is half as good.
https://www.statista.com/statistics/977873/broadcom-revenue-by-country/
It’s done so the why doesn’t really matter.
Who cares? Got my severance, three months paid leave, and a new job. Bye bye!
and that was the attitude of the top executive too, since majority of the shares were owned by a party or two and they can’t be overruled in any board meetings.
VMware was sold because they were no longer experiencing what all publicly traded companies must have:
Growth
Who cares? Got my severance, three months paid leave, and a new job. Bye bye!
During that 5 yrs he let Pat and then Raghu play business business.
And now that Uncle Pat is catastrophizing Intel, I wonder what old Magoo is up to?
Why did Broadcom pay so much ? Hock Tan could have done a better bid around 42 Billion and not 69 Billion.
Jeez people !! Move on. It was the most mismanaged companies I have ever worked for. Dell got a lottery ticket for free when he bought EMC. He had to wait 5 yrs so he can cash that lottery ticket tax free. So he cashed it after 5 yrs and got rid of his debt. End of the story. During that 5 yrs he let Pat and then Raghu play business business. How hard is it to understand that??
Michael dell is the real winner here. Emc was the best purchase. Raghu was not the correct person for CEO but easy to control as he is soft. Lots of people got impacted from this sale but hey Michael dell wins , that is all that matter.
Michael Dell took out a monster loan and bought VMware.
He then siphoned a bunch of VMware profits and lined his pockets.
Then the loan payments came due. Sold VMware.
Dell made out like a bandit. VMware sc--wed.
There is only one reason why companies get sold.... ever:
A buyer thinks that they can achieve an attractive return in investment by buying the business, then growing and/or optimizing it and either reaping the cash flow for a long time or selling for a higher price later on.
That only works when the company they are buying is poorly run and has therefore a high likelihood that improvements can actually be made.
This of course only works if the current owners (shareholders, PE firms, etc) believe that the offer is attractive and more promising compared to trying to improve the business on their own.
So, the main reason why vmware was acquired was primarily due to inept leadership and much less due to MD's ownership. Even a broadly divested shareholder base would have approved this offer.
If you want someone to blame, start with the CEO and his inept inner circle.
wow did you really need an article 6 months after the deal to figure this out? lol move on bro its over
Yes, we were sold to pay his taxes.