https://www.fool.com/investing/2023/02/27/broadcoms-acquisition-of-vmware-at-risk/
Big regulatory risk. Expecting the deal might be approved in second half of BC's fiscal year. Watch the vid for full details.
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Summary of what was said here (took transcript and ran it through ChatGPT)
Billy and Nick are discussing Broadcom's acquisition of VMware. Nick says that Broadcom is a major supplier to servers and data centers. The acquisition was valued at $61 billion, and it is a half-stock, half-cash purchase. Since it's such a massive deal, there is a lot of regulatory scrutiny surrounding it, which is expected to delay the closing until the late fiscal year 2023 for Broadcom.
Nick thinks the deal is expensive, but from a marketplace standpoint, he believes that it should go through. He has a few questions for Billy and Jose about the deal. Nick asks if the regulators will sign off on the acquisition, and what are the odds of it happening.
Billy says that he has no idea, but he thinks that regulators are trying to stop big deals. However, he doesn't see how the chip company purchasing a giant software company will hurt competition in the software industry. He hopes that they will approve it, but he's not sure.
Nick thinks that the deal will make Broadcom a unique asset in the industry, as there is no other company that's half chips and half software. However, he wonders if VMware is worth that much, as the cloud giants are coming after the private cloud hybrid cloud market.
@1tlq+1lpcrSmJ Ikr??!! 🤣
Imagine hanging around zombieville for 18 months, only for the deal to fall through. 🤣
Still: I think the deal will succeed. BC has lots of time left on the clock.
I would encourage the Executive team to not cash the checks quite yet
Big regulatory risk. Expecting the deal might be approved in second half of BC's fiscal year. Watch the vid for full details.
Worse, one day. Kit said on an AMA channel on Slack to please stop the rumours and that they are just that - rumours. The VERY NEXT DAY we got the public announcement and I believe we even got it from the press before we got an email a day later from Magoo.
I remember because that was the day I updated my resume and decided to leave (which I did 8 weeks later).
" Deal still projected to close by end of BC's 2023 fiscal year (October)"
The people saying that, would say that, no matter what. We were told to "ignore the rumours" two days before the merger was announced. Two days!
There is nothing new here. Deal still projected to close by end of BC's 2023 fiscal year (October).
Vmware share price down. Market pricing in risk of this not happening?
saying 'the deal is over' from this is as bad as saying the 'deal is done', it's all just speculation
Not over, per the article, which notes that while the warning from EU antitrust regulators does not necessarily mean that the deal will be blocked, it does increase the likelihood that the acquisition will face significant regulatory hurdles. It suggests that investors should monitor the situation closely and be prepared for potential delays or changes to the deal terms as a result of regulatory scrutiny.
The deal is over. Both EU and US regulators are against the deal.