Broadcom-Qualcomm Merger: 10 things You should know!!

5G, RF Basics, Tech Fundas
  1. Broadcom Ltd. is exploring a $100 billion-plus takeover of chipmaker Qualcomm Inc., Bloomberg News reported on Friday.
  2. It’s reportedly offering $70 a share in a mix of stock and cash, or about $103 billion not including debt. That represents a 22 percent premium to Qualcomm’s closing price on Thursday.
  3. Broadcom is still to complete its $5.9 billion takeover of Brocade Communications Systems Inc. and Broadcom is planning to move their HQ from Singapore to USA.
  4. Qualcomm is also still trying to complete its $40 billion-plus takeover of NXP Semiconductors NV.
  5. Market values of these two multi-billion dollar companies are Broadcom at a $110 billion market cap and Qualcomm at $80 billion, respectively.
  6. It is being stipulated that if Broadcom-Qualcomm deal goes on, it could eliminate Qualcomm/NXP deal.
  7. As Broadcom itself  is a major supplier of parts for Apple’s iPhone, and new management might be better positioned to resolve the dispute between Apple-QC
  8. Broadcom’s product portfolio has some significant overlaps with Qualcomm in wireless communications. But the company also builds copper and optical PHYs, switching fabrics, its own line of ARM CPUs and DSPs, and a wide range of telecommunications equipment and set-top boxes.
  9. Qualcomm is, of course, principally known for its smartphone SoCs and wireless modem business, though the company has also made plans to enter the server market. It isn’t known how a merger might affect Qualcomm’s plans to ship its Falkor CPUs.
  10. In April, Nvidia sued Qualcomm in London, alleging it had unfairly forced Nvidia to pull the plug on the Icera business it bought in 2011. Qualcomm also faces a fine in South Korea of $853 million over alleged antitrust violations.And earlier this year, the FTC filed suit against Qualcomm, accusing it of using anti competitive tactics to “maintain its monopoly” as the dominant vendor of semiconductors for phones and other mobile gadgets.

 


References:

http://www.lightreading.com/mobile/5g/could-broadcom-possibly-absorb-qualcomm/d/d-id/737926?

http://www.extremetech.com/mobile/258414-broadcom-bombshell-company-reported-talks-buy-qualcomm

http://www.fiercewireless.com/wireless/broadcom-reportedly-mulling-100b-takeover-qualcomm

https://seekingalpha.com/article/4120348-hock-tan-goes-hunting-broadcom-seeks-tie-qualcomm