Why Broadcom Stock Is Trading Higher Monday
Portfolio Pulse from Adam Eckert
Broadcom Inc (NASDAQ:AVGO) and VMware Inc (NYSE:VMW) announced that their previously announced transaction is expected to close soon. The companies also revealed the results of the elections regarding the form of consideration for VMware shareholders. Approximately 52.1% of VMware stock will be converted for Broadcom stock and approximately 47.9% will be converted into cash. Broadcom is expected to report quarterly results near the end of November.
October 30, 2023 | 1:01 pm
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NEUTRAL IMPACT
VMware's shareholders will receive either cash or Broadcom shares as part of the pending transaction with Broadcom. Approximately 52.1% of VMware stock will be converted for Broadcom stock.
The pending transaction with Broadcom is likely to have a neutral impact on VMware's stock in the short term as shareholders will receive either cash or Broadcom shares.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Broadcom's stock is trading higher after the announcement of the pending transaction with VMware. The company is also expected to report quarterly results near the end of November.
The announcement of the pending transaction with VMware and the upcoming quarterly results are likely to have a positive impact on Broadcom's stock in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100