Comment by Sohcahtoa82
Comment by Sohcahtoa82 11 hours ago
Can someone explain to me how Broadcom's plan is supposed to be profitable in the long term?
I don't get it. You buy a company, then deliberately destroy it. How is that profitable? I get that there are tax benefits to being able to show massive losses, but certainly the net at the end is still a loss.
I don't think they're aiming to have massive losses. VMWare had $13 billion in revenue and $1.5 billion profit, and it seems their aim is to cut way back on costs by laying off 40% of engineers etc while maintaining what revenue they can, and reap the unrealized profit potential there by giving up R&D, future growth in the VMWare product categories.