Sounds like he-l. Are there any comparable companies that are run in the same Hock way?
7 replies (most recent on top)
Broadcom is different than any other tech company. The acquisition strategy is to look for companies that are #1 in their area, are poorly managed (which is just about every tech company), and have a captive customer base. Once purchased, employees doing worthless work are fired, businesses that have limited value are sold to other stupid tech companies for a large chunk of money (look at what Broadcom has shed, to whom, and how long until the buying company shuts it down). From a shareholder standpoint, it is great. VMWare is the poster child for being bought.
No. There are no comparable companies.
Most of Tech doesn't really make money. They lose money/value year after year.
If you find a company in similar conditions in the stock market (private companies are not subject to the same conditions) then the odds are that it is ran on the same principles.
Having real profit, paying dividends, nice stock value trend, delivering value to customers with edge technology that integrates more and more, lean, able to retain key talent.
yeah...CA was a laughing stock of software tech, they were an afterthought at best. a museum as someone mentioned at time if acquisition. it has been poorly run for years, former ceo got into legal trouble, and their most recent ceo was hired to sell the company by spending $$ to put lipstick on a pig.....
```Every company he purchased has been mismanaged. ```
This is true. They were mismanaged and also their products were mainly legacy and require only to be kept running. This is the real reason why such large cuts can be made -because no real investment is made.
Not one and also not one as successful as Broadcom. Hock is disliked because he tells the truth and doesn’t care about things that don’t grow shareholder return. Every company he purchased has been mismanaged. CA spent 100’s of millions (I think $500 million but can’t confirm), to shrink the company. Something Hock would never do.
not a relevant analogy, and it's Welch not Welsh...
GE was a real conglomerate with many unrelated businesses. and zero GTM synergy.
you can't compare tech peers to Broadcom. we are a Private Equity company, but with an aligned GTM. as long as there's maturing, sticky tech Hock will prevail
Broadcom is the most extreme example. By the way - Hock has pretty much taken the Jack Welsh model and applied it chip manufacturing. And has now moved into infrastructure software.