Broadcom's bid for Qualcomm could shake up the chip industry (AVGO, QCOM)

09 November, 2017, 02:06 | Author: Terri Saunders
  • Broadcom's bid for Qualcomm could shake up the chip industry (AVGO, QCOM)

However, it seems that Qualcomm may not be interested in the unsolicited bid, as reports indicate that the company will reject the offer. (NASDAQ:QCOM) valued at $103 billion. The company would have to close its acquisition of NXP Semiconductors, which it is now wrapping up for $47 billion.

Given China's ambitions in the chip and mobile telecoms space, I can't see the Chinese authorities taking kindly to a Broadcom-Qualcomm merger.

In a report previous year, the China-based benchmarking company AnTuTu ranked Qualcomm's Snapdragon 820 system-on-chip the leader in the global smartphone processor market, with more than 21 percent of the market.

Some of the factors favoring the success of the deal include the fact that the two companies could achieve product synergies given that they both manufacture mobile chipsets.

Qualcomm's core business is designing the chip-based radios used by smartphones to connect to cellular networks, while a big part of Broadcom's business is designing chip-based Wi-Fi and Bluetooth radios. (NASDAQ:AAPL) could also favor the deal's approval by shareholders.

Website offering 1.3-gallon Hidden Valley ranch dressing keg
According to the product's website, the keg is made with a special FDA-approved inside coating that locks in the freshness. The shipment arrives with 12 bottles of ranch that its proud new owner can use to fill the keg on an as-needed basis.


However, some analysts believe that Broadcom does not have the financial capacity to acquire Qualcomm and that the acquisition might generate negative returns for Broadcom shareholders.

And since Qualcomm and Broadcom's combined China income surpasses 2 billion yuan ($300 million) and their combined global revenues in the a year ago were over 10 billion yuan ($1.5 billion), the Chinese government has enough to legally warrant an investigation. The deal would merge the two companies, creating the third largest chip maker in the world.

Antitrust officials, who also would have to approve a Broadcom-Qualcomm deal, still are considering Qualcomm's purchase of NXP. Broadcom was confident that the acquisition would be met favorably by users.

It is not clear whether Qualcomm will engage with Broadcom in talks about the proposal or fight against the suggested takeover. As a free trial member, you will have access to over 1300 real time stock trading reports full of actionable trading strategies.

Recommended:

  • New Zealand's 'First Cat' Has Died After Being Hit By A auto

    New Zealand's 'First Cat' Has Died After Being Hit By A auto

    Ms Ardern will be rubbing shoulders with 20 world leaders including US President Donald Trump and Russian leader Vladimir Putin. Paddles , who had six toes on each foot, became an internet sensation in October when the @ FirstCatofNZ Twitter feed launched.
    Trump once trashed China. Now, they're friends

    Trump once trashed China. Now, they're friends

    President Donald Trump nodded appreciatively as China's Xi Jinping showcased a centuries-old temple in Beijing's Forbidden City. Two have overflown Japan , and Pyongyang says it can mount a nuclear warhead on a rocket with the USA mainland within range.

    Reese Witherspoon And 'Friends' Star Jennifer Aniston Returns To Television

    It wouldn't be a surprise if soon enough, Apple's video efforts are going head-to-head with other providers like Netflix and HBO. In October, it struck a deal with acclaimed director Steven Spielberg's Amblin Television and Comcast Corp.
  • CBO estimates ending Obamacare mandate would increase uninsured, premiums

    It would also cut deficits by about $338 billion over a decade, versus the $416 billion found by an earlier estimate. The study also concludes that premiums would rise 10 percent every year.

    Airtel announces data rollover for broadband users

    Bharti Airtel , the country's largest telecom services provider, has announced new offers for both postpaid and prepaid customers. In this feature, the unused data of a completed billing cycle is carried forward and added to the next billing cycle.
    American Legion Post Lunch Honors Veterans

    American Legion Post Lunch Honors Veterans

    We show gratitude through a renewed commitment to care for those men and women who have faithfully served our nation in uniform. Carvajal, VSU president, will speak about the importance of Veterans Day and how it is celebrated for those who served.
  • Transgender Candidates Make History

    Transgender Candidates Make History

    The Minneapolis Star Tribune had endorsed her, saying she was highly qualified and well prepared for the office. Andrea Jenkins easily won the race for a south Minneapolis seat Tuesday with roughly 73 per cent of the vote.
    Universal's Dark Universe Loses Producers Alex Kurtzman and Chris Morgan

    Universal's Dark Universe Loses Producers Alex Kurtzman and Chris Morgan

    Like The Mummy itself, the Dark Universe was likely going to be bad, but not so bad that I didn't want to see it . An office that was revamped for the project and decorated with monsters is now mostly empty.
    Uber's Flying Taxi Service Faces Many Hurdles, Even With NASA's Help

    Uber's Flying Taxi Service Faces Many Hurdles, Even With NASA's Help

    While testing will begin in 2020, Uber wants its flying taxi service to be as normal and affordable as ordering an UberX by 2023. The flying taxi project could drastically reduce trip times by avoiding traffic while remaining relatively affordable .
  • Raghuram Rajan gets Arvind Kejriwal's offer for Rajya Sabha nomination

    Rajan's name came to the fore, party members assumed the seats would be given to senior leaders Sanjay Singh, Ashutosh and Mr. Besides, such a move would also help AAP reach out to a larger masses ahead of the Lok Sabha elections in 2019.

    Trump administration enacts new rules limiting trade, travel with Cuba

    Collin Laverty, president of Cuba Educational Travel, called the policy "out of touch" with both Cuban and American interests. Americans wanting to visit Cuba will have to go as part of organized tour groups run by US companies.

    Germany: Constitutional court demands third gender option for birth certificates

    So intersex people would have features that are neither wholly female nor wholly male, or a combination or neither. The X and Y chromosomes determine a person's sex.


Popular

$150 Million Worth of Ethereum Frozen Due to Parity Vulnerability
On GitHub , a user going by the nickname of Devops199 took credit for discovering and accidentally triggering the bug. Users of Parity wallets were confused yesterday after the company revealed the discovery of the security threat.

Unions Agree To Talks Aimed At Ending Train Strike
The dispute on Southern began in April of 2016, and has resulted in a series of strikes on the network which have created travel disruption for thousands.

Leaders of company that made Halladay's plane 'devastated'
Halladay, who was known for his successful career with the Philadelphia Phillies, left behind his wife and two young sons. Karkow was killed along with passenger Cagri Sever, the company's newly hired director of engineering.

Wow ratchets Icelandair rivalry with JFK route
Good news, New Yorkers - Iceland's low-priced airline, WOW Air , will be offering flights out of JFK beginning April 26, 2018. WOW air , Iceland´s ultra-affordable transatlantic airline, will begin service to John F.

Yahoo's Mayer points to Russians in data-breach apology
Yahoo required users to change passwords and took new steps to make data more secure, Mayer said. Verizon acquired most of Yahoo's assets in June, the same month Mayer stepped down.

Sheep recognize faces of celebrities
When a portrait of the handler was interspersed randomly, the sheep chose them seven out of 10 times. If you ever find yourself in the company of sheep, don't be surprised if they seem to recognize you.

The Syrian army took control of the last stronghold of ISIS
Abadi visited Qaim and the nearby Husaybah border crossing in Western Iraq on Sunday, al-Iraqiya TV said, raising the Iraqi flag. A map shows areas of control in Syria between August 30, 2017 and October 30, 2017.

Oil Prices Slip After Surprise Build In Crude Inventories
China's General Administration of Customs said crude imports fell to 7.3 million barrels per day in October down from a high of 9 million bpd in September.

Election Day 2017, polls close at 7 pm
Instead of filling different forms and following various protocols, you can do it all with just one single application form. She said things have been efficient. "I've voted every year since I was 18", said Mesa County voter, Sutton Casey.

Meek Mill's Sentence May Have a Dark, Corrupt Backstory
Brinkley said the "Dreams and Nightmares" rapper failed a drug test and refrained from notifying her of his traveling schedule. The judged spoke about the several chances she had given Mill , but he 'basically just thumbed your nose at this court'.