Broadcom offered US$103B for Qualcomm?!?

[rsjsouza]

What the heck?!?
https://www.eetimes.com/document.asp?doc_id=1332556&

(hopefully this is not a repost. Sorry if it is)

[Falcon69]

Qualcomm is huge here in the US. Their machines are in almost every semi-truck across the US. They monitor the driver's drive time, as well as do other things. I hated those damn machines. It would flag me all the time if I went over my 11 hours of drive time. No way to turn the things off, legally anyway.

They also make cell phones as well, or they use to. I'm sure they are in a bunch of telecommunication stuff here too, like office phones and server stuff.

But still, 103B? Dayum. that's a chunk of change.

[rsjsouza]

Qualcomm is huge here in the US. Their machines are in almost every semi-truck across the US. They monitor the driver's drive time, as well as do other things. I hated those damn machines. It would flag me all the time if I went over my 11 hours of drive time. No way to turn the things off, legally anyway.

They also make cell phones as well, or they use to. I'm sure they are in a bunch of telecommunication stuff here too, like office phones and server stuff.

But still, 103B? Dayum. that's a chunk of change.

In my home town there was (is?) a competitor to Qualcomm logistics division. This used to be a significant segment of Qualcomm, although they are also big in wireless terminals chipsets since the 2.5G days and the then-called feature phones. IIRC they also have the processors in second tier smartphone brands such as LG and Lenovo (Motorola).

[trophosphere]

I believe that Qualcomm also owns most of the patents related to LTE and thus receives a large portion of royalties from big companies for using their technology. I think this is part of the beef Apple has with Qualcomm in that royalty costs for the LTE technology can vary from company to company based on the whim from Qualcomm.

[rsjsouza]

...and the battle becomes a full war...
www.electronicdesign.com/embedded-revolution/broadcom-proposes-replacing-qualcomms-board-turning-takeover-hostile

About 20 years ago an urban legend used to state that Qualcomm had more lawyers than engineers - if that is true, perhaps that is the fate of a tech company with such ranks...

[wraper]

IIRC they also have the processors in second tier smartphone brands such as LG and Lenovo (Motorola).

No, they have the most powerful processors in the first tier smartphones. Apple uses their best in market LTE modem chips, they now have patent war because apple started to use competitor chips.

[Gyro]

It looks as if Trump has stepped in and blocked the Broadcom takeover of Qualcomm on 'National Security' grounds...

http://www.bbc.co.uk/news/business-43380893

His order cited "credible evidence" that the proposed $140bn (£100bn) deal "threatens to impair the national security of the US".

[Howardlong]

It looks as if Trump has stepped in and blocked the Broadcom takeover of Qualcomm on 'National Security' grounds...

http://www.bbc.co.uk/news/business-43380893

His order cited "credible evidence" that the proposed $140bn (£100bn) deal "threatens to impair the national security of the US".

Irrespective of one’s political leanings or whether it had much to do with security as opposed to protectionism, there is no doubt in my mind that this was an effort to buy market share and stifle competition. There is a huge overlap in their businesses, and as such I can’t see how it was going to benefit the consumer either in terms of pricing or innovation.

[rsjsouza]

I agree. The takeover spree of very close competitors looks always very fishy - and yes, I am also looking at Atmel/Microchip. We'll see how this unfolds for either company.

Now, what is interesting is that republicans are always praying the gospel of self regulating and free markets: where is this now? Only when it is convenient?

[BravoV]

Now, what is interesting is that republicans are always praying the gospel of self regulating and free markets and "pure capitalism heaven" : where is this now? Only when it is convenient?

You forgot few words ....there, inserted for you. 

[coppice]

It looks as if Trump has stepped in and blocked the Broadcom takeover of Qualcomm on 'National Security' grounds...

http://www.bbc.co.uk/news/business-43380893

His order cited "credible evidence" that the proposed $140bn (£100bn) deal "threatens to impair the national security of the US".

Irrespective of one’s political leanings or whether it had much to do with security as opposed to protectionism, there is no doubt in my mind that this was an effort to buy market share and stifle competition. There is a huge overlap in their businesses, and as such I can’t see how it was going to benefit the consumer either in terms of pricing or innovation.

There are two valid arguments for getting massive in semiconductors: 1) be the 800lb gorilla in the market (the above argument). 2) be big enough to be a complete semiconductor maker, with your own fleet of start of the art fabs.  While I expect argument 1) is at play here, argument 2) is just as valid.

[David Hess]

I agree. The takeover spree of very close competitors looks always very fishy - and yes, I am also looking at Atmel/Microchip.

Broadcom already has a history of buying competitors and then discontinuing products.  I suspect some of this involves buying the supply chain of other competitors to discontinue it.

[tszaboo]

Qualcomm's actual products are not worth this amount. They are cutting edge, but they are in a market which is not making almost any profit per unit and which is rapidly taken over by the chinese.
Qualcomm is all about the patents. Did you know, that the big reason that your phone costs as much as it does is due to Qualcomm? That they make more on the smartphone market than Samsung and Apple together? That some double digit percentege of the phone's sales price goes to Q. as patent rights? If you make a phone from with diamonds then the same percent goes to Q as with a regular phone? It is a disqusting business practice IMHO.