Let's say I have 100k of unvested RSU today at the current market price for VMW. What will happen when the deal closes? I'm assuming they convert to Broadcom stock, but at the $142 per share price, not the current market price, but I wanted to clarify first. Also, how will it work for stock I already hold, that's vested?
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To be clear, Broadcom is doing this deal with 50% cash and 50% AVGO stock, however each shareholder will receive an Election form (at least 20 days before close) so they can decide how they want to be compensated for their vested VMW stock (eg. 100% cash, or 75% cash + 25% stock, etc.). At close Broadcom will prorate all Elections so that they equate to 50-50, so you probably wont get exactly what you asked for. There is some good info in this thread: https://www.thelayoff.com/t/1j1IXtnA#replies
No man. Your unvested stock is converted to unvested avgo stock at a (.252) roughly 1 to 4 ratio. It will follow the same vest schedule when you started at VMW
Your vested stock is the one that is 50/50 stock and cash assuming you still own it at time of acquisition. You can sell it beforehand
" you will get 50% cash and 50% converted."
Talk to me like a 5th grader.
Does "cash" mean they write you a check for unvested stock at acquisition time? $100 in unvested = a check for $50 and $50 carried forward into AVGO stock (at same vesting schedule)?
I'm thinking the impact of this of waiting through acquisition versus bailing for a new job and giving up unvested.
Sorry.... its Moo. The point is moo... its like a cow's opinion, it doesn't matter. It's moo.
Thank you for caring. In exchange for the correction, I'm happy you got my point :)
it's a mute point.
I could try to care less, but I won't. The correct word is 'moot'!
It's a moot point.
Regarding Shareholder-Election Notice. Recall that between Dell/Silver Lake and their majority ownership, it's a mute point. We're along for the ride.
Has anyone received the shareholder election notice yet... ie where each shareholder decides if they want cash, AVGO stock or a combination of both - for their VMW stock?
Unvested stock will convert tot 0.252 AVGO. Vested will be paid out for 142.50 or converted tot 0.252 AVGO "pro rata". That means that if everyone wants cash, you will get 50% cash and 50% converted and also if everyone wants conversion, you will get 50% cash and 50% converted. You get want you want if 50% of the people wants cash and 50% of the people wants conversion, but how likely is that because it all depends on the AVGO value. Main thing is to understand that Broadcom pays the $69B 50% in cash and 50% in stock so you get what you want as much as possible.
Depends on your position, VP/SVP+ they might vest but if not in this position or higher unvested RSUs won’t vest. This happened in Symantec acquisition, could be different with VMware but don’t get your hopes up