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‘What the Hock?’; Broadcom shares sink on shock software deal

“After the deal, the combined company would have roughly 71 percent revenue from semiconductors and 28 percent from software” reports businessinsider.com. While some analysts said the shift in sectoral focus might prove another masterstroke by Broadcom Chief Executive Hock Tan, the knee-jerk reaction of investors drove Broadcom stock 10 percent lower in premarket trading.CA’s main business is selling software for big, mainframe computers, in which it is second only to IBM .”We think investors will likely be disappointed at this deal, which seems more financial engineering/PE driven than due to any strategic rationale.”. “Management is showing its ambition to move beyond silicon to be that of an Infrastructure Technology company,” Morgan Stanley analysts said.
 
Source: businessinsider.com



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