Broadcom's Krause to become CEO of combined Citrix-Tibco (update)

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• Update 4:12pm: Add company confirmation of executive news.
• Tom Krause, who resigned as president of Broadcom Inc.'s (NASDAQ:AVGO) software group earlier Monday, will become the CEO of the company being formed by the combination of Citrix Systems (NASDAQ:CTXS) and Tibco Software. Citrix rose 1.6%.
• Krause will become CEO after Citrix's (CTXS) planned $16.5 billion sale to Vista Equity and Elliott's Evergreen Coast. The deal is expected to close in 3Q.
• Dan Streetman will continue to serve as TIBCO CEO, and Bob Calderoni will continue to serve as Citrix Interim CEO and President, until the completion of the combination of Citrix and TIBCO, according to a statement.
• Broadcom (AVGO) earlier announced that Hock Tan, Broadcom's president and CEO, will immediately assume Mr. Krause’s responsibilities, and the position of President of Broadcom Software Group will be eliminated.
• Avgo shares dropped 3.1%.
• The Krause news was earlier reported by Bloomberg.
• Krause's departure comes as Broadcom (AVGO) agreed to purchase VMware (VMW) for $61 billion in cash and stock in May.

Comments

[bluescorpion0]

sounds like ceo has too much control. Like Putin surrounded by yes men will anyone tell him Not a good idea?

[Pistolero Yogi]

@scorpionblue just short AVGO if you're that convinced. Put your money where your mouth is. And let us know how it goes so we can have a good laugh.

LONG AVGO - In Hok Tan We Trust

[bluescorpion0]

@Pistolero Yogi Poor results doesn't mean stock drops. It can be flat for 20 years. That is failure too. Perhaps even worse than an immediate drop as you can't see it easily. Look at Japan. Internal, slow motion implosion. Is it any better than fast crash? I don't think so.
Another thing we see here is Broadcom is miserly and cheap. When you don't pay you lose your talent. I suspect this will happen to Vmware too, but even worse: here they will lose their clients. CEO eliminated software group president position and stepped in? 1. highly dominating and 2. you only do that in a crisis.

[chrisgar]

@scorpionblue Today, Hock Tan has many fewer reports than before this announcement. Did you see that all silicon divisions will report to Charlie K. instead of Hock ? So Hock gave up a lot of direct organizational control.

[craftbrewinfo]

As long as Mr. Tan is at the helm, no worries

[chrisgar]

@craftbrewinfo The most interesting move is they moved Charlie K. to a role where he has all hardware divisions reporting to him.