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me_againyesterday at 5:07 PM3 repliesview on HN

Was VMWare dying prior to the acquisition? I don't really know the financials but that wasn't the impression I had.


Replies

hungryhobbityesterday at 5:14 PM

No, but Broadcom didn't buy them to build a company over time. They have a long pattern of buying a tech company, jacking up the prices, and making enough money (before customers switch) to more than make up for the purchase price of the company, netting them a tidy profit. Plus, at the end what they're left with isn't completely value-less either.

Everyone who followed Broadcom (and that included many VMWare employees) knew exactly what was coming the moment the acquisition was announced.

wolvoleoyesterday at 5:59 PM

Dying no, but their business certainly had a downward trend on it since so much is moving to containers instead.

colechristensenyesterday at 6:17 PM

VMWare din't have a growth trajectory and didn't have a reasonable expectation of one.

You don't make these kinds of sales when you're circling the drain, you do it when you can see that future coming for you.