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Avago is acting like some kind of corporate raider: the only reason they had the money to buy Broadcom was huge bank loans:

https://www.reuters.com/article/us-avago-acquisition/avago-t...



Return of the LBO?


In much more crude form.

What Hock Tan does is he gets ridiculous leverage, find near monopolist companies to buy, buys them, then quickly pays off debts by selling off almost everything from acquisition targets except for things needed to maintain that monopoly status.

Nothing smart in this scheme


LBOs never left. That you're hearing about them now is simply because it's on HN.

Oracle bought Peoplesoft using an LBO for example. Dell is another high profile LBO/MBO.




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