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Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover

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Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover

#43

Earlier quoted context omitted.

Same as: acquire renown company making a solid product, substitute product by something from China at a fraction of quality/cost, still charge the same for the next couple years until word has spread.

Examples?

Sharp TVs

Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover

#45

Earlier quoted context omitted.

Same as: acquire renown company making a solid product, substitute product by something from China at a fraction of quality/cost, still charge the same for the next couple years until word has spread.

Examples?

The vast majority of the HiFi industry

Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover

#46

Could someone who understands the situation better explain .. what are the business synergies between Broadcom and VMware? Is there any business overlap at all..? Maybe buying and laying off is a profitable move, but I'd expect it to be done by investment firms that specialize in that. It'd be a bizarre financial gamble for a chip company. So there must be some angle where this makes sense for them and not for anyone…

It’s not that different from software focused private equity shops like Thoma Bravo. Buy a software company, starve it of resources, and price just below each clients BATNA. Revenue may decline over time, but costs fall faster and the buyer harvests that premium. There’s no synergies, just a willingness to be more ruthless and give fewer shits. Edit: clarity

you forgot the classic move of "release the legal team to sue anyone doing anything vaguely similar to your patents"

Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover

#47

Earlier quoted context omitted.

Examples?

Craftsman tools

if you're talking about hand tools, they've always been average quality at best. The real advantage has been the warranty, which from what I understand is still honored.

Craftsman power tools are absolute joke and might as well have a fisher price logo on them.

Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover

#48

Earlier quoted context omitted.

Examples?

Pyrex is notorious for this. The whole brand used to be about it being borosilicate glass, but they substituted it for standard glass which - surprise - shatters under thermal stress.

This is so frustrating - Pyrex isn't itself anymore. Is there any brand that still sells kitchen glassware made like Pyrex used to be?

Re: Broadcom to Cut Almost 1,300 VMware Jobs in California After Takeover

#50

Earlier quoted context omitted.

Isn't that what private equity firms been doing forever?

When did Broadcom become a private equity firm? I thought they baked pies.

No they didn't become a private equity firm, a private equity firm's roll-up firm bought the old broadcom and took the acquisition target's name. They didn't change the ticker though it's why they're still AVGO on NASDAQ. Looks like KKR and silver lake were the private equity folks that created avago which started rolling all these firms including broadcom whose name it took
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