Interesting news out of the ongoing fracas surrounding the Broadcom (NASDAQ:AVGO) and VMware (NYSE:VMW) deal: the deal spread is getting tighter as China’s review looks to produce a lot less meddling and a lot more deal-making.
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The latest reports suggest that the State Administration for Market Regulation in China isn’t likely to request any more changes in the Broadcom/VMware deal. Though full approval may still be a few weeks out, as market testing is still in progress, the deal is likely to go through in its latest incarnation. While the deal was halted temporarily while remedy documentation was reviewed, the latest reports suggest the modified deal isn’t raising many hackles at all, and should go quietly through.
That’s not all that Broadcom is celebrating, though, as it managed to win a court case in Germany. The District Court of Munich revealed that Netflix (NASDAQ:NFLX) is infringing on a Broadcom patent, requiring Netflix to “…cease and desist all further infringement in Germany.” The patent in question is one that impacts Netflix’s ability to provide Ultra HD content to users, which means settlements and/or royalties are likely in Broadcom’s near-term future.
Is Broadcom a Buy, Sell, or Hold?
Meanwhile, analysts are very much on Broadcom’s side overall. With 16 Buy ratings and two Holds, Broadcom stock is considered a Strong Buy. Further, with an average price target of $981.81, Broadcom stock offers investors 20.88% upside potential.
