Thread regarding VMware layoffs

Hock chose his words very carefully - what he said is accurate, albeit confusing.

"Foreign investment control clearance" - also referred to as "Foreign Direct Investment" (FDI) clearance - is a subcategory of the regulatory clearances required to close. FDI regulators are looking at the effect of the acquisition on things like national security, public health and safety, supply chain continuity, etc.

The other category of regulatory clearances is antitrust clearance. These regulators are looking at the anticompetitive effects of the acquisition. (Note: in some jurisdictions, the deal was reviewed by both an FDI regulatory agency and an antitrust regulatory agency.)

In China, the holdup is antitrust clearance, not FDI clearance. So, again, what Hock said was accurate.

We know lots in EMEA innit.

Kissing, invented by the French.
Being tall, invented by the Dutch (New Yorkers imported a few back in the 17th, in a Borg~esk play).
History, invented by the English.

Trump that lot, I dare you.

I always love mixing geopolitics with how I’ll make my mortgage payment.

You dont have idea about what is going on in EMEA. Some id--ts talking about Biden will go to China, LOL! follow what is happening in burning EMEA then make comment. After understood that maybe you can understand why China blocks acquisition

Can we just close this already? I’m ready to get a severance and move on. This has been soul su-king.

If it is severance you want, you waited year and half. What’s few more weeks??

Now the rest of us that needs/wants jobs are the once that are worried, the f thing doesn’t go the way we want.

Before you judge the once that still wants jobs,.

Every one has a valid reason, to each their own

Bc needs to be conscious of its rare-earth metal supply line as well… if they pi-s china off too and they’ll need to go get material from Africa which costs like 4x as much. Just saying…

Deal will close as planned. First set of offers out this Friday. So take it to say for the rest of this week.

Can we just close this already? I’m ready to get a severance and move on. This has been soul su-king.

I doubt China blocks the deal eventually but there is a huge risk that they may play all sorts of games threatening to block BC if they move forward etc. Is Hock going to take that risk, absolutely not. No way is he going to put BC business in danger to acquire VMW.

IIRC, layoffs postponed now ? Great news !!!! Lets partyyyy

VMware might not have much revenue in China, but BC might. So they're putting that at risk, if they still go ahead with merger without approval.

BC has substantial revenue in China and as we know China plays dirty, they may not hesitate to ban BC from doing business or put some onerous restrictions on their busines there. It will be China saying F U to BC not the other way around.

Irony that this may turn out to be similar to their acquisition of Qualcomm which Trump blocked last minute due to retaliation from the US side when they were a foreign company. Now it's exactly the opposite.

Definitely a last min wild card. Doubt they can just say F China though.

VMware might not have much revenue in China, but BC might. So they're putting that at risk, if they still go ahead with merger without approval.

But China's unlikely to give immediate approval considering they just got hit with chip restrictions. It would be a loss of face for CCP, which they're very conscious of.

Minimum this could delay the deal. Max this torpedo's the whole thing.

But Hawk's unlikely to just walk away. He's spent a whole yr/countless hours on this deal.

Now worries. Biden is traveling to China to address this, and other matters, assuming he can stay upright

The White House move apparently triggered speculation that China may hit back by derailing the blockbuster merger between Broadcom and VMware. China has not announced anything on the deal.

https://www.investors.com/news/technology/vmware-stock-will-biden-ai-chip-curbs-china-derail-broadcom-vmware-deal/

That or he’s about to play “F around and find out”, he can then hang out with Jack Ma reminiscing

they will probably do what dell and emc did years ago and say F china and just open up a small "VMware/Broadcom China" LLC to surpass approvals

Hock is just weighing the opportunity costs right there. It’s no surprise that he won’t publicly state that he gives a sh-t about China.

You have to see it from this perspective, if this obstructs the deal and it gets delayed it will most likely have a massive negative impact on the share price. On the other side, what can China do? The law states possible fines from 1-10% of annual Revenue within China and possible freeze of assets.

My bet here is, the fines and frozen assets are just less than the hit on the stock this could result in.

Thank you. This is helpful.

\/ \/...both comments spot on...

"all necessary jurisdictions" is the key here... I believe he intends to go ahead without regulatory approval from China. Someone had mentioned that VMW China business isn't that big anyway so I think they have done the analysis and don't care much about it, they will get the approval somewhere down the line and deal with it.

Don't expect this to derail the close on Oct 30

It sounds like HT gives two $#*+s about China's approval.