Will SEC Indictments and VMW Personnel Chaos Dissuade AVGO From Its $61 Billion Acquisition?


Broadcom and VMware share prices fall after SEC results: photo – Shutter Stock

When semiconductor manufacturer Broadcom Inc (AVGO) announced its intention to acquire cloud services provider VMware (VMW) in May 2022, it had planned to make VMW one of its leading flagship brands. However, following recent news of employee layoffs and allegations of fraud, AVGO may be reconsidering its potential $61 billion investment.

Although months have passed since the announcement of this deal, the news has not settled well with VMW employees. Aside from layoff worries, employees fear losing important jobs while also losing important customersts.

VMware (VMW) price chart

Additionally, the Securities and Exchange Commission (SEC) has indicted VMW on damning allegations of misleading investors regarding a number of its practices and forecast numbers. The case has already been settled and VMW has been fined $8 million.

Analysts from Raymond James, Deutsche Bank and Goldman Sachs have all made their…

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