VMware Broadcom

Can anyone explain in simple terms how the conversion of VMware to Broadcom stock will work if the acquisition is approved?

The way I’m reading it - Broadcom would change existing VMware shares to Broadcom stock at a rate of aprox 4 vmware shares to 1 Broadcom share. Is that accurate?

Doesn’t make a ton of sense though when I run the math. VMware is trading over the Broadcom offer price at $152 a share. $152 x 4 = $608. Broadcom’s current share price is $883.

Why is there such a large discrepancy there and how do these things typically get addressed? Is the expectation that Broadcoms stock would drop to close the gap a bit once the acquisition closes? Is there any reason someone would take the cash? Hoping someone can explain it a little better for me. Thanks!

submitted by /u/patrone84
[link] [comments] https://www.reddit.com/r/stocks/comments/14xd56t/vmware_broadcom/
Creato 2y | 12 lug 2023, 05:21:06


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