

It's Official: Avago Buys Broadcom in $37B Deal - randomname2
http://www.businessinsider.com.au/avago-to-acquire-broadcom-for-37-billion-2015-5

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randomname2
The reason for the deal: as the WSJ noted yesterday, "growth has been hard to
come by for Broadcom, a 24-year-old company that makes communications chips
for tablets and smartphones, and supplies the Internet links for cable-
television and telecommunications devices."

As to why Avago is likewise excited to close the deal, "Avago has been likened
to health-care companies such as Valeant Pharmaceuticals International Inc.
that are based in foreign tax jurisdictions and also have become voracious
acquirers."

So Broadcom is merely the latest "notch on the bedpost", funded with billions
in new debt.

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randomname2
The press release also mentions $750 million "synergies" in the next 18 months
which should translate to about 2000-3000 layoffs.

