Broadcom's $61b VMWare merger faces another hurdle: UK's competition watchdog

A month after the EU decided to stick a probe into semiconductor manufacturer Broadcom's proposed buy of virtualization juggernaut VMware, the UK has said it will do the same. Broadcom first announced the agreement with the cloud computing company in May 2022 as a way to diversify its technology portfolio. The Competition and …

[Youngone]

Increase Prices?

The plan is always to increase prices. How are they going to pay their creditors if they don't increase prices?

Does anyone believe this stuff anymore?

[CrazyOldCatMan]

Re: Increase Prices?

How are they going to pay their creditors if they don't increase prices?

Except all the money that VMWare might make post-borg will be spent on servicing the debt that the merger will impose on them..

See Toys 'R Us and Twitter.

[Anonymous Coward]

Re: Increase Prices?

Price will stay the same. Broadcom will expect to be paid fairly for the value received. Excessive discounts to buy market share - something common in software - will go away. So the CEO is correct, the prices won't change. If Broadcom really wanted to zorch this thinking they would lower prices and stop all discounts which would gain revenue and silence naysayers.

[Rgen]

I hope it gets blocked.

[Anonymous Coward]

Looking in the wrong place

This probe is insane and another example of the UK reg authorities just being out of touch with whats going on in the market.

You’re scrutinizing the dominant player in a market thats in a double digit decline where there’s a number of viable alternatives such as KVM, HyperV etc…

But the rampant anti-competitive behaviour of the 3 hyperscalars (i.e. i cant run O365 in any cloud other than Azure as 1 example…) which are capturing 60% of IT infra spend is being ignored.

Lost the plot