Broadcom / VMware deal valuation at closing
When the VMware deal was announced, it was a $69 billion deal in EV and $61 billion in equity value.
But given the 50% fixed ratio stock consideration (0.252 shares of Broadcom for each share of VMware) and the fact that Broadcom's stock has gone up by 70%+ between deal announcement and close, wouldn't this deal be approaching $90+ billion in EV at close?
Surprised to see all the news reports still using the old $69 billion valuation when referring to the deal. I've only seen FactSet referring to it as an $84 billion deal in equity value / $88 billion in EV, and a Financial Times article referring to it as a $92 billion deal.
In this case, which stock price date for Broadcom would you use to calculate the final closing deal valuation? Would it be the day right before the closing announcement (11/20/2023), or the official closing date (11/22/2023)?
Just did some quick excel math. If we use 11/20/2023 as the price date, then the deal is $89 billion in equity value and $92 billion in EV.
Also congrats to the tech bankers (Citi/MS buy-side, GS/JPM sell-side) that advised this mega-deal. It's now by far the largest tech M&A deal of all time.
Bump
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