AVGO 's plabook: grab and squeeze
Reposted from yesterday's note on the topic:
Avago's playbook:grab and squeeze
Broadcom has now a pretty long track record in both SW and HW acquisitions. Always plays the same: reduce staff, pressure clients with exclusive contracts, raise prices; all to hit their target margins. Repeat with next acquisition as the prior carcass is squeezed dry.
This is good for shareholders and senior execs obviously. Bad for everyone else. Even the remaining staff: I cant imagine those RSUs can somehow pay for a decent work/life balance.
VMWare's many customers should/will raise strong concerns and the ruling bodies worldwide would likely give such an acquisition the electron microscope treatment as a result.
This requires a new popcorn machine.
ETA: the squeezing doesn't stop when the deal is done. It is constant and continuous. Staff can expect multiple waves of reductions. Best of luck to all.
Biting the hand that feeds IT
