Broadcom is reportedly nearing a $3.8 billion sale of its remote access unit to private equity firm KKR.
The end-user computing (EUC) unit was inherited as part of Broadcom's acquisition of software maker VMware in November 2021 and provides software that enables users to access desktops and applications remotely.
Broadcom is reportedly nearing a $3.8 billion sale of its remote access unit to private equity firm KKR, according to multiple sources. The end-user computing (EUC) unit was inherited as part of Broadcom's acquisition of software maker VMware in November 2021 and provides software that enables users to access desktops and applications remotely. This sale is expected to help streamline the company's portfolio after its takeover of VMware, with CEO Hock Tan looking to focus on hybrid cloud services. The deal could be announced as early as Monday, but sources are requesting anonymity due to confidentiality concerns.
Broadcom CEO Hock Tan wants to streamline the company's portfolio after completing its takeover of VMware in November.
> The potential deal represents an effort by Broadcom CEO Hock Tan to streamline the company's portfolio after completing its $69 billion takeover of software maker VMware in November.
KKR prevailed over other private equity firms, including EQT, for the end-user computing (EUC) unit.
>Broadcom CEO Hock Tan will use the deal to build a bigger foothold in so-called hybrid cloud services,
Accuracy
> Broadcom is nearing a $3.8 billion deal to sell its end-user computing (EUC) unit to private-equity firm KKR.'
Broadcom CEO Hock Tan prevailed over other private equity firms, including EQT, for the end-user computing (EUC) unit.
>Broadcom is nearing a $3.8 billion sale of remote access unit to KKR.'
Broadcom CEO Hock Tan will use the deal to build a bigger foothold in so-called hybrid cloud services, which cater to businesses that store data both in their own facilities and outside server farms.
Deception
(50%)
The article is deceptive in several ways. Firstly, the author does not disclose their sources and only quotes anonymous people familiar with the matter. This makes it difficult to verify the accuracy of the information presented in this article.
< The deal could be announced as early as Monday, the sources added, requesting anonymity because the matter is confidential.
> The potential deal represents an effort by Broadcom CEO Hock Tan to streamline the company's portfolio after completing its $69 billion takeover of software maker VMware in November. <
> KKR prevailed in the auction for the end-user computing (EUC) unit over other private equity firms, including EQT, the sources said.
Fallacies
(85%)
The article contains several fallacies. Firstly, the author uses an appeal to authority by stating that KKR prevailed in the auction for the end-user computing (EUC) unit over other private equity firms without providing any evidence or reasoning behind this claim. Secondly, there is a dichotomous depiction of Broadcom CEO Hock Tan's decision to streamline the company's portfolio after completing its $69 billion takeover of software maker VMware in November as being solely motivated by efficiency and not considering other factors such as potential revenue growth or market opportunities. Thirdly, there is an inflammatory rhetoric used when stating that Broadcom said it would seek to divest its end-user computing unit without providing any context or reasoning behind this decision.
KKR prevailed in the auction for the end-user computing (EUC) unit over other private equity firms, including EQT.
Bias
(85%)
The article reports that Broadcom is nearing a $3.8 billion sale of its end-user computing (EUC) unit to private equity firm KKR. The author does not provide any personal opinions or biases in the reporting, but there are some examples of bias present in the article.
The potential deal represents an effort by Broadcom CEO Hock Tan to streamline the company's portfolio after completing its $69 billion takeover of software maker VMware in November.
Site
Conflicts
Of
Interest (50%)
Broadcom has a financial tie with KKR as they are reportedly in talks to sell Broadcom's remote access unit for $3.8 billion.
Broadcom is near sale of unit to KKR for about $4B - reports
@ritholtz47: be patient ... it took 3.5 years for my
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article contains deceptive practices such as editorializing and selective reporting. The author uses the phrase 'my Amazon Splits to Get in DJIA thesis' which is not relevant to the topic of Broadcom being sold to KKR for $4B.
> be patient ... it took 3.5 years for my <Amazon Splits> to Get in DJIA< by AMZN going into the Dow-30 will be in effect on February 26th (i.e. Monday).
Fallacies
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None Found At Time Of
Publication
Bias
(75%)
The author has a monetary bias as they mention the sale price of $4B and also talk about how Broadcom will focus on strengthening their balance sheet. They also have an ideological bias as they express excitement for the partnership with Nvidia and AI opportunities.
> be patient ... it took 3.5 years for my "Amazon Splits to Get in DJIA" thesis to pan-out:
folks who think there is only one way to skin a cat in the technology sector aren't aware of its history.
High-margins typically attract strong competition.
Site
Conflicts
Of
Interest (50%)
There are multiple examples of conflicts of interest in this article. The author has a financial stake in the company being reported on (Broadcom) and is reporting on a potential sale to KKR for $4B. Additionally, the author mentions their personal relationship with Hock Tan, CEO of Broadcom.
Broadcom is a company being reported on and Fineman has a financial stake in it. This could compromise his ability to report objectively.
The title of the article includes 'near sale' which implies that there may be financial gain for Broadcom in this transaction
Author
Conflicts
Of
Interest (50%)
Joshua Fineman has a conflict of interest on the topics Broadcom and KKR as he reports on their potential $4B sale. He also has a financial tie to VMWare integration as he mentions Nvidia partnership.
and he had lotsa time to study VMware because of how long it took close deal ...
so, sometime later this summer, he’ll already probably be looking forward what next?
> Yeah, Broadcom will split ... just not sure how high it is on the priority list right now ...
Broadcom CEO Hock Tan wants to streamline the company's portfolio after completing its takeover of VMware in November.
KKR prevailed over other private equity firms, including EQT, for the end-user computing (EUC) unit.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article is deceptive in several ways. Firstly, the author uses sensationalism by stating that Broadcom is nearing a $3.8 billion sale of its remote access unit to KKR without providing any context or information about the value of this deal compared to other deals in the industry.
The potential deal represents an effort by Broadcom CEO Hock Tan to streamline the company's portfolio after completing its $61 billion takeover of software maker VMware in November.
Fallacies
(85%)
The article contains several fallacies. Firstly, the author uses an appeal to authority by stating that Broadcom CEO Hock Tan is attempting to streamline the company's portfolio after completing its $61 billion takeover of software maker VMware in November. This statement implies that Hock Tan has a certain level of expertise and knowledge about what is best for the company, but it does not provide any evidence or reasoning to support this claim. Secondly, the author uses inflammatory rhetoric by stating that KKR prevailed in the auction for the end-user computing (EUC) unit over other private equity firms, including EQT. This statement implies that there was a competition between different companies and one of them won, but it does not provide any evidence or reasoning to support this claim. Thirdly, the author uses an informal fallacy by stating that Broadcom said in December it would seek to divest its end-user computing unit. This statement implies that Broadcom made a public announcement about their plans, but there is no evidence of such an announcement and therefore it cannot be considered as true.
Broadcom CEO Hock Tan's attempt to streamline the company's portfolio after completing its $61 billion takeover of software maker VMware in November
KKR prevailed in the auction for the end-user computing (EUC) unit over other private equity firms, including EQT
Bias
(85%)
The author uses language that dehumanizes the end-users of Broadcom's remote access unit by referring to them as 'any device'. This is an example of ideological bias. The author also implies that these users are not capable of making their own decisions about what devices they use, which is a disproportionate number of quotations reflecting a specific position.
Broadcom is nearing a $3.8 billion deal to sell its business that allows users to access desktops and applications from any device to private equity firm KKR.
KKR prevailed in the auction for the end-user computing (EUC) unit over other private equity firms, including EQT, the sources said.
The potential deal represents an effort by Broadcom CEO Hock Tan to streamline the company's portfolio after completing its $61 billion takeover of software maker VMware in November.
Site
Conflicts
Of
Interest (50%)
Milana Vinn has conflicts of interest on the topics Broadcom and KKR as she is reporting on a $3.8 billion sale of remote access unit to KKR.
>Broadcom CEO Hock Tan was reportedly involved in the deal with private equity firm KKR, which could compromise his ability to act objectively and impartially.
Author
Conflicts
Of
Interest (50%)
The author has a conflict of interest on the topics Broadcom and KKR as they are involved in a $3.8 billion sale deal.
Broadcom is nearing a $4 billion deal to sell its end-user computing (EUC) unit to private-equity firm KKR.
>Broadcom CEO Hock Tan wants to streamline the company's portfolio after completing its takeover of VMware in November.
KKR prevailed over other private equity firms, including EQT, for the end-user computing (EUC) unit.
Accuracy
Broadcom completed its takeover of VMware in November following an unexpectedly long process that culminated in regulatory approval from China.
>Broadcom CEO Hock Tan wants to streamline the company's portfolio after completing its $61 billion takeover of software maker VMware in November.
KKR prevailed over other private equity firms, including EQT, for the end-user computing (EUC) unit.
>Broadcom is nearing a $4 billion deal to sell its business that allows users to access desktops and applications from any device.
Deception
(30%)
The article is deceptive in several ways. Firstly, the author claims that KKR is nearing a deal worth about $4 billion to buy a software business from Broadcom Inc., but they do not provide any evidence or sources for this claim. Secondly, the author states that EQT AB and Thoma Bravo were also among the private equity firms interested in acquiring the Broadcom unit, but they do not disclose any information about these companies' involvement in the deal. Lastly, the article mentions that San Jose-based Broadcom has outlined plans to divest a second VMware asset it deemed as non-core, but does not provide any details on this asset or its value.
The article mentions that EQT AB and Thoma Bravo were also among the private equity firms interested in acquiring the Broadcom unit, but does not disclose any information about these companies' involvement in the deal.
The author claims that KKR is nearing a deal worth about $4 billion to buy a software business from Broadcom Inc., but they do not provide any evidence or sources for this claim.
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(85%)
The article contains a statement that KKR is nearing a deal worth about $4 billion to buy a software business from Broadcom Inc. This implies that the author has an opinion on the matter and may be biased towards one side or another.
> The acquisition could be announced as soon as Monday, said the people, who asked not to be identified because the details haven't been made public.
