https://www.ft.com/content/efc1e0b7-93a8-4189-a503-368193d3fb20
Hopefully, EU can drag this thing out long enough that Broadcom walks away!!!
17 replies (most recent on top)
Do any of understand what a phase 2 review really is? They do these on all large deals, Broadcom has relationships with all these EU people and they will get this one done without a doubt. It may slow things down, but won’t be greater than 1 year. And if what I am seeing going down with sales now, that means VMW will do a layoff before close to get expenses down. I predict we will have two vmw layoffs before the Broadcom big layoff at close.
while this does not guarantee that the deal does not ultimately get approved what this does is throw a serious spanner in the works and delays the whole thing. At this point something is better than nothing... at the very least this causes a lot of delay in the whole thing and extends it out so that next years bonus and RSU vest may be covered.
Complexity of the acquisition + EU doing 'phase 2' probe equates to 1 year+ closing date.
If I could predict the future I would love to say how long haha - Id assume Nov close is out of the picture at least. Considering Broadcom has dealt with EU for anti-trust stuff before and they're apparently already talking to them, it could be shorter than expected but a full year wouldnt be out of the question either. Again just guessing
'..more time.." like, how much more time?
When do you think the acquisition will close?
Everyone believing in this false hope - it's just delaying the inevitable. This deal has no similarities to ARM and Nvidia. Only positive is that it gives more time for anyone on visas to look for jobs.
Every acquisition in EU above a certain amount gets investigated. Most of them get approved. I am sure that the EU officials gave Dell executives a hard time for a few months before letting the merger go through. It is by no means certain that Broadcom will be blocked from this acquisition. It will likely go through after the EU functionaries do their thing for show.
Great news, thanks EU, and a dig to all the trolls on this site.
Maybe the EU will get a concession so that the price they pay for VMware products will not get a 3x price increase every year.
Why would they walk away?
The stock was on a trajectory to $70 for no other reason other than we were not moving fast enough to SaaS and Subs. And if we did move fast the revenues would be down and they would drop because of that.
We just become more ripe for take over. Same outcome.
this is literally the worst thing, why would anyone want to drag this out longer for 2 years of uncertainty??? And to say the market likes this is id--tic - look at the stock dip vs the NASDAQ. It was what happening before but this is different lol
praise god! for once the ridiculous bureaucracy of the EU is going to do something great!!!
Disagree that stock will be doomed.
ARM are still doing OK, after the failed NVIDIA merger.
All hail the EU! We love you!
"If Broadcom walks away (which they won’t), we will be worse off. The worst thing that could happen now is the deal doesn’t happen. Stock will plummet and we will be doomed."
I don't necessarily agree with that. The opposite could instead happen given that the deal has not exactly been well received. Instead there might be a relief that it didn't happen.
If Broadcom walks away (which they won’t), we will be worse off. The worst thing that could happen now is the deal doesn’t happen. Stock will plummet and we will be doomed.
Excellent...