Items tagged with (NASDAQ:BRCM)

Well, we can't say that we saw this one coming – at least not so soon. We knew that Broadcom's hostile takeover of Qualcomm was on thin ice, especially considering that the latter thought that the former's offers have greatly undervalued the company. Tonight, however, President Donald J. Trump took matters into his own hands by unilaterally blocking any potential merger or acquisition of Qualcomm via an Executive Order. Broadcom is headquartered in Singapore, but has a significant business presence and offices in the United States. In fact, the company was in the process of relocating its headquarters to the U.S., but the executive order states that there is "credible evidence" that Broadcom... Read more...
Things are a bit complicated in the technology world right now. Broadcom really wants to buy Qualcomm and merge the two coms into one company. The problem for Broadcom so far is that Qualcomm has rejected each of its offers because its wants more money. There is real doubt cast on any deal at any price because the U.S. government is going to scrutinize the deal over potential national security issues due to foreign investment. If Broadcom can convince U.S. regulators that it should be allowed to purchase Qualcomm, an even bigger fish is standing by possibly ready to gobble up Broadcom. A report that started with the Wall Street Journal is making the rounds that claims chip giant Intel is eyeing... Read more...
Broadcom's courtship of Qualcomm just got a bit more interesting. Broadcom began a hostile bid for Qualcomm late last year, and has largely been rebuffed for its advances. However, in recent weeks, Qualcomm has become more receptive to Broadcom's proposal -- that is if the company can sweeten its offer price and pass regulatory oversight. Unfortunately for Broadcom, that last point is playing out already due to action taken by the Committee on Foreign Investment in the United States (CFIUS). In this case, the CFIUS is stepping in early in the process, and is asking Qualcomm to delay its planned March 6th annual shareholder meeting. The CFIUS is tasked with reviewing acquisitions that could have... Read more...
Will they, or won't they? Qualcomm up until this point has rebuffed all of Broadcom's advances with regards to a hostile takeover. Broadcom made the first move back in November 2017, and followed up with a second offer valuing Qualcomm at roughly $120 billion. Shortly after the second offer was made, Qualcomm responded, "Broadcom proposal materially undervalues Qualcomm and falls well short of the firm regulatory commitment the Board would demand given the significant downside risk of a failed transaction." It appears that Qualcomm is now having second thoughts about the total rejection and is warming up to additional talks with Broadcom. The two companies had a face-to-face on February 23rd... Read more...
Broadcom really wants to buy Qualcomm and merge the two chip giants into one company that would be a major force in the communications market. Broadcom had put forward an offer that valued Qualcomm at $120 billion yesterday and many thought that the company's board would find the offer hard to refuse. However, the Qualcomm board was unanimous in rejecting the $120 billion offer. Qualcomm's board sent Broadcom a letter outlining the reasons why it noped out of the deal, writing, "Broadcom proposal materially undervalues Qualcomm and falls well short of the firm regulatory commitment the Board would demand given the significant downside risk of a failed transaction. " The decline on the $120 billion... Read more...
There are mergers, and then there are mega-mergers, such as the one that Avago Technologies and Broadcom just agreed to. The two chip makers have entered into a definitive agreement for Avago to acquire Broadcom for $37 billion as part of cash and stock deal, making it the largest transaction in the tech industry to date. Under terms of the agreement, Avago will pay Broadcom shareholders $17 billion in cash, giving them a 32 percent stake in the new company. The other $20 billion will be paid in stock. At that price, the two companies combined will have an enterprise value of $77 billion. They can also claim the most diversified communications platform in the semiconductor industry on combined... Read more...
The Internet of Things promises big things, but to get past the theoretical stage, companies need to develop practical solutions to major obstacles, not the least of which is finding a way for devices running on different platforms to communicate effectively. Microsoft and 50 other companies have teamed up on the AllSeen Alliance to develop open source solutions for IoT interoperability, but that’s not the only group doing that sort of work; major industry players have created the Open Interconnect Consortium, as well. The OIC currently consists of Dell, Intel, and Samsung as well as Atmel, Broadcom, and Wind River, and the group’s stated goal is to connect the next 25 billion devices... Read more...
This whole wearable computing thing doesn't appear to be disappearing anytime soon, so rather than ignore the market, Broadcom is embracing it by introducing what it claims is the world's first Global Navigation Satellite System (GNSS) system-on-chip (SoC) designed for low-power, mass-market wearable gadgets -- devices such as fitness trackers and smart watches. An on-chip sensor hub helps users track and manage their health by giving precision tracking and location data. It constantly monitors user activity levels and location history to improve accuracy, all while consuming less power than traditional architectures, according to Broadcom. Image Source: Broadcom "Today's wearables like fitness... Read more...