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Looks like most of the US tech community is welcoming this decision. It's interesting to imagine their reactions when foreign governments intervene to block Am

Looks like most of the US tech community is welcoming this decision. It's interesting to imagine their reactions when foreign governments intervene to block American companies acquiring their native companies. Eg. the Dutch government blocking Qualcomm's takeover of NXP. (EU stalling the acquisition to investigate antitrust issues is different.)

Analemma_ 9y ago
I'd have done the same if Broadcom were an American company. I oppose it because I pretty much reflexively oppose all mergers of huge companies leading to more consolidation: the evidence is overwhelming that this is harming competition and increasing prices across a variety of business sectors. As for the national security aspect, I don't give a shit. Trump did the right thing for the wrong reason.
- vermontdevil 9y ago
  And this is a private equity play - buy the company. Strip it of its assets, ignore any future R&D opportunities and move on as soon as all revenues are exhausted. Hate these type of moves.
  - ksk 9y ago
    >And this is a private equity play - buy the company. Strip it of its assets, ignore any future R&D opportunities and move on as soon as all revenues are exhausted. How have you established that this is the most likely outcome?
  - pythonaut_16 9y ago
    That should be called a locust merger
  - whatok 9y ago
    Private equity? Both of the companies are publicly listed in the US.
    - LynxInLA 9y ago
      Yes, but the acquisition was to be financed with $106 billion in debt https://www.bloomberg.com/news/articles/2018-02-12/broadcom-lines-up-106-billion-of-debt-funding-for-qualcomm-deal https://www.bloomberg.com/news/articles/2018-02-12/broadcom-...
- ksk 9y ago
  Would you mind linking to the evidence and explaining how it applies to this specific case?
Slansitartop 9y ago
> It's interesting to imagine their reactions when foreign governments intervene to block American companies acquiring their native companies. 1. There's too much damn consolidation going on, and any barrier to more is good, IMHO. Preventing consolidation is pro-competitive, and I support that. 2. While this decision isn't directly about China, that country has long been pretty egregious in blocking acquisition of its domestic companies (IIRC, a 50-50 partnership is the best you're permitted as a foreigner). It makes no sense to be open to acquisitions by countries who aren't willing to extend the same rights to you. 3. National security is a thing that shouldn't be sacrificed for high-roller business deals. I'm all for preserving American capabilities in these areas for that reason. 4. I don't really give AF about any American corporate whining about acquisitions getting blocked and other stuff like that.
- Tyrek 9y ago
  Why does every second comment on this topic reference China? An (effectively) American company domiciled in Singapore has no relation whatsoever to China, but yet it's one of the salient points in half the posts I'm reading on this topic?
  - Slansitartop 9y ago
    Well, I only referenced it because it was a handy example of a case where "foreign governments [already] intervene to block American companies acquiring their native companies" to respond to the grandparent comment. As for your question, my understanding is a Broadcom acquisition of Qualcomm would change the market such that Chinese competitors would be able to force themselves deeper into the American market. So it's more about the second-order effects of the deal rather than the first-order ones.
xkjkls 9y ago
I think The Netherlands and Singapore are an Apples to Orange comparison. Given that The Netherlands has been one of our closest allies for decades and was an original founding member of NATO, them deciding to halt a US takeover on "national security reasons" would be shocking. I'd also argue that this deal would probably have gone through if Broadcom was a dutch entity.
- _fizz_buzz_ 9y ago
  Singapore and the US also have a very longstanding relationship.
  - njarboe 9y ago
    Since Singapore came into existence in 1965, I'm not sure any countries relationships to Singapore are very longstanding (well, maybe Malaysia's).
  - xkjkls 9y ago
    True, I'm not saying Singapore isn't an ally. They just have much more hedged relationships with the US than a country like The Netherlands, who we've managed to fight two World Wars with.
jbigelow76 9y ago
Looks like most of the US tech community is welcoming this decision. Even a broken clock (current WH admin) is still right twice a day.
- jessaustin 9y ago
  It's good you added that parenthetical; one might have suspected "most of the US tech community".
- TheArcane 9y ago
  WH admin?
  - newscracker 9y ago
    It's a reference to Trump as White House (WH) admin.

Analemma_ 9y ago

I'd have done the same if Broadcom were an American company. I oppose it because I pretty much reflexively oppose all mergers of huge companies leading to more consolidation: the evidence is overwhelming that this is harming competition and increasing prices across a variety of business sectors. As for the national security aspect, I don't give a shit. Trump did the right thing for the wrong reason.

vermontdevil 9y ago
And this is a private equity play - buy the company. Strip it of its assets, ignore any future R&D opportunities and move on as soon as all revenues are exhausted. Hate these type of moves.
- ksk 9y ago
  >And this is a private equity play - buy the company. Strip it of its assets, ignore any future R&D opportunities and move on as soon as all revenues are exhausted. How have you established that this is the most likely outcome?
- pythonaut_16 9y ago
  That should be called a locust merger
- whatok 9y ago
  Private equity? Both of the companies are publicly listed in the US.
  - LynxInLA 9y ago
    Yes, but the acquisition was to be financed with $106 billion in debt https://www.bloomberg.com/news/articles/2018-02-12/broadcom-lines-up-106-billion-of-debt-funding-for-qualcomm-deal https://www.bloomberg.com/news/articles/2018-02-12/broadcom-...
ksk 9y ago
Would you mind linking to the evidence and explaining how it applies to this specific case?

Slansitartop 9y ago

> It's interesting to imagine their reactions when foreign governments intervene to block American companies acquiring their native companies. 1. There's too much damn consolidation going on, and any barrier to more is good, IMHO. Preventing consolidation is pro-competitive, and I support that. 2. While this decision isn't directly about China, that country has long been pretty egregious in blocking acquisition of its domestic companies (IIRC, a 50-50 partnership is the best you're permitted as a foreigner). It makes no sense to be open to acquisitions by countries who aren't willing to extend the same rights to you. 3. National security is a thing that shouldn't be sacrificed for high-roller business deals. I'm all for preserving American capabilities in these areas for that reason. 4. I don't really give AF about any American corporate whining about acquisitions getting blocked and other stuff like that.

Tyrek 9y ago
Why does every second comment on this topic reference China? An (effectively) American company domiciled in Singapore has no relation whatsoever to China, but yet it's one of the salient points in half the posts I'm reading on this topic?
- Slansitartop 9y ago
  Well, I only referenced it because it was a handy example of a case where "foreign governments [already] intervene to block American companies acquiring their native companies" to respond to the grandparent comment. As for your question, my understanding is a Broadcom acquisition of Qualcomm would change the market such that Chinese competitors would be able to force themselves deeper into the American market. So it's more about the second-order effects of the deal rather than the first-order ones.

xkjkls 9y ago

I think The Netherlands and Singapore are an Apples to Orange comparison. Given that The Netherlands has been one of our closest allies for decades and was an original founding member of NATO, them deciding to halt a US takeover on "national security reasons" would be shocking. I'd also argue that this deal would probably have gone through if Broadcom was a dutch entity.

_fizz_buzz_ 9y ago
Singapore and the US also have a very longstanding relationship.
- njarboe 9y ago
  Since Singapore came into existence in 1965, I'm not sure any countries relationships to Singapore are very longstanding (well, maybe Malaysia's).
- xkjkls 9y ago
  True, I'm not saying Singapore isn't an ally. They just have much more hedged relationships with the US than a country like The Netherlands, who we've managed to fight two World Wars with.

jbigelow76 9y ago

Looks like most of the US tech community is welcoming this decision. Even a broken clock (current WH admin) is still right twice a day.

jessaustin 9y ago
It's good you added that parenthetical; one might have suspected "most of the US tech community".
TheArcane 9y ago
WH admin?
- newscracker 9y ago
  It's a reference to Trump as White House (WH) admin.