Thread regarding Broadcom Corp. layoffs

Today's cash cow is tomorrow's liability

And with the kind of treatment R&D gets from Octane, everything is bound to become liability eventually. How many market leading products were envisioned and launched AFTER deal from acquired companies (Agilent, LSI, PLX, Emulex, erstwhile-Broadcom, Brocade...) so far? Surprise surprise.., NONE!!

And get this irony - had Octane been CEO of companies he acquired, there would've been no present day Broadcom! Life span of any block-buster product is limited. Products from cBrcm and brocade approaching their end-life without replacements, its no-brainer that many more products will get shifted to offshore graveyard centers in coming quarters. That pace will only pickup going forward. Oh, lest I forget, to the person who keeps posting "no more cuts in Broadcom" have fun revealing that to HT in your next 1:1 counselling session with him.

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| 3391 views | | 6 replies (last February 14, 2019) | Reply
Post ID: @OP+WkiebHy

6 replies (most recent on top)

The actual model is to buy businesses that are dominant players in a space but poorly managed. He goes in and divest the business that aren’t profitable and have no clear path to be profitable Examples are when he divested FCD which was the general flash controller to Seagate. I believe Seagate has shut it down after figuring out it was a bad purchase. For the businesses he keeps, investment continues on developing new technologies but the investments are carefully scrutinized to make sure it makes financial sense.

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Post ID: @1ipzb+WkiebHy

Who is @WkiebHy-2qrc quoting that APD should have been dumped ?? It is one of the profit making and growing BUs.

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Post ID: @3rdx+WkiebHy

That arrogant attitude of "feeding" acquisitions is what kills Innovation DNA (of whatever left). Oh BTW smart Exec, what is it that your model really does? Just pandering products you never built to customers you never met, in-process handing you windfall gains at the cost of continuous rolling heads. Get it straight Exec, you're feeding upon us and not feeding us. Slim lingering products here and there are no justification for culling most R&D resources.

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Post ID: @2wna+WkiebHy

"perpetual acquisition and divest model" you say? Then why does Hock keep the LED business and the APD ASIC business (the team before absorbing LSI)? According to your wisdom, these BU's should have been dumped a long time ago.

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Post ID: @2qrc+WkiebHy

I think people are biased against their own geographical locations - "shifted to graveyard centers" ??

HT has a business model which is working and feeding all these who crib without solid reasons.

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Post ID: @1qso+WkiebHy

That's how Hock's system work. It is a perpetual acquisition and divest model. He acquires a profitable proven technology at it's peak then discards it and moves to the next big thing. Wash, rinse, repeat

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Post ID: @ewj+WkiebHy

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