The deal is over. Both EU and US regulators are against the deal.
As much as I'd love for this to be true, I hope people don't truly believe cr-p like this. The deal is as good as done and the only issue is when it will be finalized. Don't get your hopes up by listening to somebody's wishful thinking.
Is no one factoring in Hock’s huge ego? Two failed deals in a row would be too much for the poor guy to handle. You can always make more money, but you can’t wash away the stink of failure.
@xfo+1lq2Fi9G is 100% correct.
Weak management. Bloated org. Lackluster sales. This place is the zombie apocalypse, run mainly by H1Bs and Desi mafia.
On borrowing cost.... the Citrix/Tibco deal had $10B in financing. The Bonds were at 6.5% nominal interest, but the banks needed to make concessions and sell the bonds at a discount. Effective rates came in at 10%-12.5%.
If we apply the same to BComs $38B in financing (I think), which translates to about $4B in annual interest payments. About as much as current profits. Yes, lots of people want this deal to go through, but the numbers may not work out, especially if interest rates keep rising in the corporate bond market.
It’ll be over when that big fat lady sings and not a moment before it. I’m just trying to figure out who is the fat lady…?
" If it falls through VMware will actually have to work for their numbers"
Vmware can't though. That's the problem. Vmware management is simply unable to get the job done. That's why they became a takeover target in the first place. Weak management, growth via acquisition rather than sales. These are the callings cards of a company in distress. Vmware can't get it done. BC buying is the only hope.
That is the best outcome for employees.
Errr. Nope. You keep telling yourself that. If it falls through VMware will actually have to work for their numbers rather than hoping Bcom picks up the bill and if you want 50%+ layoffs then keep hoping it falls through.
As much as I'd love for this to be true
Then you don’t understand VMware and the economics. Careful what you wish for.
MD & Silverlake want their money. They will do what it takes to get it.
As much as I'd love for this to be true, I hope people don't truly believe cr-p like this.
Ok.
The deal is as good as done and the only issue is when it will be finalized.
What makes your prognostication better than theirs?
"With borrowing rates considerably higher now than last year, you don’t think that won’t be a factor"
How much of a factor? The deal was for $30 billion needing to borrow. Does that mean BC needs to pay an extra $1B a year? Less? More? I don't know and you don't either.
No it is not over but high chance that FTC will sue. Just watch. BC has only 2 more 3 month extensions left after May. After that BC can choose to walk away sans penalty. With borrowing rates considerably higher now than last year, you don’t think that won’t be a factor? Could it be you that is wishful thinking ;)
Big money wanted the Qualcomm-Broadcom deal to go through as well. EU regulators can totally stop this deal. It really is not done even though the stakeholders can and will do everything to make it happen. EU failure is a real possibility. That is the best outcome for employees.
Too much money wants the deal to happen. That is all that matters.
Clairvoyant.