This is playing out exactly like the Intel acquisition of Tower. Intel CEO also visited China to appease them yet China did nothing. China is going to do the same here to send a clear message.
Intel also had the outside date expired and paid a 353M termination fee.
On Nov 26 expect the same message... Deal scrapped.
https://www.reuters.com/technology/intel-walk-away-54-bln-acquisition-tower-semiconductor-sources-2023-08-16/
Yeah I’m wondering if Tower got offer letters. Doubt Pat would let that happen.
Either way there is and will be a large exodus of employees. With the mess this is and what it has done to the brand.
Either SAMR gave verbal confirmation of approval or said they do not have any more reservations to approve the deal - this happened in early october. Same time VMW stock hit 180$, is that a lie? Everything was on track. BC moved ahead as planned. I guess they had similar experience with SAMR for their previous acquisitions (they took the verbal approval as guaranteed). Then executive order came in, China did not give the written approval as promised, instead stopped responding. That's it. It's over now.
It is different for Broadcom/VMware acquisition. China SAMR approved the deal earlier in october. BC went ahead with sending offer letters, suspending vmw trading etc. Then China stopped responding, they are now saying it needs additional sign off from Ministry of foreign affairs. BC got screwed by China.
You keep posting this, but there was no information that SAMR approved the deal in October. Are you making this up? If not, please share a source.
It is different for Broadcom/VMware acquisition. China SAMR approved the deal earlier in october. BC went ahead with sending offer letters, suspending vmw trading etc. Then China stopped responding, they are now saying it needs additional sign off from Ministry of foreign affairs. BC got screwed by China.
I hope the deal falls through, but Intel - Tower acquisition is worth 5.4 billion where as this acquisition is worth more than 60 billion which is 10 times more! So, the stakes are higher in our case!
I’m sure Intel didn’t send notices of employment to a very small percentage of the company either…..
That was arrogance and idiocy in the part of bc and vmw leadership putting the cart before the horse and now they have destroyed the future if this doesn’t close
Aftermath;
So what happened to Tower then? Surely if the BC deal fails, it will just create even more uncertainty within VMware over the next 12-36 months
Was intel CEO confident like Hock? Did they start sending offers ?