The now infamous 'know-it-all poster' refused to acknowledge that Broadcom had to service loan debt to acquire VMware. Well, get ready for his TROLL name-calling.
https://finance.yahoo.com/news/broadcom-kicks-off-bond-sale-153619532.html
14 replies (most recent on top)
Sure, they'll do that this year. And then next year they will
realize they don’t have the skills to migrate and will pay the pímp again.
Good look with that hypothesis.
My money is on cutting a check and passing the cost to their customers. Easy peasy. Now time for golf.
"The price increase will be absorbed by the majority of CIOs. They are just going through the stages of grief. Acceptance is near."
Sure, they'll do that this year. And then next year they will find another vendor, probably a real cloud company, who will save them money and they'll look like transformational heroes.
Instead, many CIOs are planning to choose an alternative vendor to VMware
95% of CIOs talk the talk but don’t walk the walk. Why would they actually want to do work when they can cut a check? Who means to miss golf for this stuff?
The price increase will be absorbed by the majority of CIOs. They are just going through the stages of grief. Acceptance is near.
"Win/Win! we are all buddies again! Profits to the moon!"
Buying AVGO bonds now seems like a high risk gamble. HT assumed that VMware customers were just a foolish as CA and Symantec customers. Recent tech industry analyst reports dispute this assumption. Instead, many CIOs are planning to choose an alternative vendor to VMware due to 100-200 percent price increases for old software.
And Broadcom can go to these Financial companies and sell the Golden Gate Bridge. Broadcom can payoff its debts.
Ignoring the article information that states that yields have recently come down and Broadcom can replace short-term debt with lower yielding longer term debt, here's how the game is played:
Hock goes to major Financial companies and says "you will be paying 120% more for Broadcom, er, VMWare software than you were last year. The financial companies complain and say "what do we get out of this?" So Hock says, let me do some refinancing of bonds, and you can be my issuer and make money from that. OK? OK! Win/Win! we are all buddies again! Profits to the moon!
Ops clowns will have to cash out sooner than later! Stock might go well in the next 6-10 months, but shareholders are not du*b. Sell and diversify this scammers
This is the way!
Can't pay the loan. Extend and pretend. Refinance at higher and higher rates. That is what Yellen is doing for the treasury. Refinance the longer term debt and issuing shorter term debt at higher rates. No one wants to buy longer term debt. No one knows what will happen in 10 years or 20 years or 30 years.
"Private Equity, Leveraged buyouts and debt fueled looting of shareholders is a dying game."
I agree with that assessment. Hock Tan is part of a dying bread of short-sighted "profit at any cost" zealots. And KKR has the same myopic mindset that will squander any tech asset. They have no skill in growing the product portfolio of a tech vendor's business. Their only talent is financial manipulation.
Private Equity, Leveraged buyouts and debt fueled looting of shareholders is a dying game. With interest rates going down from 20% in early 80s to zero percent in 2020 was the perfect setup for Private Equity to destroy industries and countries. Now interest rates are going to go up over the next few decades. Still issuing debt is probably the last gasp of Private Equity. Going forward no one will buy this debt. They will have to issue preferred shares. That is a class of shares who will have a first cut at the assets when the companies declare bankruptcy. Prepare for more preferred share issuance.
Hock is the highest paid ceo in the world. 168 million. 510x the average Broadcom employee. Another couple of stellar years like this and then the Broadcom employees and share holders can go f themselves.
Add it to the $3.8 billion KKR paid to take the EUC dead weight BU from Broadcom.
The know-it-all has a big mouth and says nasty things to posters, but he is a coward.
Ignore him, and he will go away with his tail between his legs. Of course, HT had to take out loans to finance the VMware acquisition. Only an id--t would believe otherwise.