Broadcom’s $19 billion deal to buy ‘unloved’ CA Technologies shocked everyone and crushed the stock— here’s what they could be missing (AVGO, CA)
|07/13/2018||Posted by BusinessMediaguide.Com under General World News||
- Broadcom’s stock plummeted on Thursday following news of its $18.9 billion acquisition of CA Technologies.
- While investors fled, analysts familiar with the companies aren’t so sure that the deal is bad for Broadcom.
- The bull case for Broadcom’s acquisition is multi-faceted: Some analysts see cross-over between the two companies’ product portfolios — particularly in mainframes, where Broadcom has a hardware footprint and CA Technologies has a software play.
- Others see Broadcom as pivoting toward software in order to build out its portfolio the way a private equity firm might.