You are currently viewing SemiWiki as a guest which gives you limited access to the site. To view blog comments and experience other SemiWiki features you must be a registered member. Registration is fast, simple, and absolutely free so please, join our community today!




Poll: Will Broadcom Acquire Qualcomm?

This poll will close on 03-21-2018 at 09:13 AM

Results 1 to 10 of 10

Thread: Broadcom buying Qualcomm just won't happen? (Poll)

  1. #1
    Admin Daniel Nenni's Avatar
    Join Date
    Aug 2010
    Location
    Silicon Valley
    Posts
    4,096
    Thumbs Up
    Received: 754
    Given: 2,093

    Broadcom buying Qualcomm just won't happen? (Poll)

    Speaking of fake news........ according to Fudzilla, after talking to "a few dozen" C level executives, the Broadcom acquisition of Broadcom won't happen. A handful of outside analysts also feel it would be bad for the industry.

    Broadcom buying Qualcomm just won’t happen

    I strongly disagree and will argue the pro side but I would be interested in the SemiWiki crowd's thought on this.. Will it happen? Why or why not?

    Broadcom buying Qualcomm just won't happen? (Poll)-broadcom-qualcomm.jpg

    0 Not allowed!
    Last edited by Daniel Nenni; 4 Weeks Ago at 08:16 AM.
    Now available in print or Kindle: "Mobile Unleashed: The Origin and Evolution of ARM Processors In Our Devices"

  2. #2
    Top Influencer
    Join Date
    Oct 2015
    Posts
    177
    Thumbs Up
    Received: 125
    Given: 16
    It won't happen at the current price offered. Hostile bids, where you have the management of the target company actively fighting the deal, very often fail. And the premium here is so low that there isn't much incentive for shareholders to support it either. If Broadcom sweetens the deal and gets Qualcomm management on board, then it's got a reasonable chance of success, but even then then there are regulatory hurdles. I think $80 would be the absolute minimum if the deal was friendly, and it's not, so it could take $90 or even $100 to get a hostile bid approved by shareholders.

    1 Not allowed!
     

  3. #3
    Admin Daniel Nenni's Avatar
    Join Date
    Aug 2010
    Location
    Silicon Valley
    Posts
    4,096
    Thumbs Up
    Received: 754
    Given: 2,093
    Quote Originally Posted by count View Post
    It won't happen at the current price offered. Hostile bids, where you have the management of the target company actively fighting the deal, very often fail. And the premium here is so low that there isn't much incentive for shareholders to support it either. If Broadcom sweetens the deal and gets Qualcomm management on board, then it's got a reasonable chance of success, but even then then there are regulatory hurdles. I think $80 would be the absolute minimum if the deal was friendly, and it's not, so it could take $90 or even $100 to get a hostile bid approved by shareholders.

    Agreed. I think $100 would do it and I can assure you Hock Tan can raise it. Good for QCOM investors but you think it will be good for the industry?


    And what are the odds of Hock Tan keeping the name Qualcomm and ditching Broadcom?

    0 Not allowed!
    Now available in print or Kindle: "Mobile Unleashed: The Origin and Evolution of ARM Processors In Our Devices"

  4. #4
    Influencer
    Join Date
    Aug 2015
    Posts
    68
    Thumbs Up
    Received: 68
    Given: 40
    Quote Originally Posted by Daniel Nenni View Post

    Agreed. I think $100 would do it and I can assure you Hock Tan can raise it. Good for QCOM investors but you think it will be good for the industry?


    And what are the odds of Hock Tan keeping the name Qualcomm and ditching Broadcom?
    I think BCOM takeover of QCOM will basically kill off innovation at QCOM and the mobile industry will lose an innovation powerhouse. Its a horrible thing for the mobile industry if the takeover is approved and it manages to clear regulatory hurdles. BCOM will almost surely kill ARM server projects which have good potential. QCOM's licensing business could also be severely affected. The BCOM management will focus on just financial engineering. Earnings , P/E and other number stuff. They do not care about real engineering and innovation. They will layoff massive number of employees at QCOM. QCOM shareholders would be stupid to approve this takeover bid.

    Qualcomm could lose 30% of workforce

    1 Not allowed!
     

  5. #5
    Top Influencer
    Join Date
    Oct 2015
    Posts
    177
    Thumbs Up
    Received: 125
    Given: 16
    Quote Originally Posted by Daniel Nenni View Post

    Agreed. I think $100 would do it and I can assure you Hock Tan can raise it. Good for QCOM investors but you think it will be good for the industry?


    And what are the odds of Hock Tan keeping the name Qualcomm and ditching Broadcom?
    I think Hock will go with the Qualcomm name. Qualcomm has a much stronger brand, and keeping the name is would be a small overture to current Qualcomm employees and management, a way to keep the legacy of all they have done alive in some way. Hock himself could not care less about the Broadcomm name, he cares only for profits.

    Quote Originally Posted by raghu78 View Post
    I think BCOM takeover of QCOM will basically kill off innovation at QCOM and the mobile industry will lose an innovation powerhouse. Its a horrible thing for the mobile industry if the takeover is approved and it manages to clear regulatory hurdles. BCOM will almost surely kill ARM server projects which have good potential. QCOM's licensing business could also be severely affected. The BCOM management will focus on just financial engineering. Earnings , P/E and other number stuff. They do not care about real engineering and innovation. They will layoff massive number of employees at QCOM. QCOM shareholders would be stupid to approve this takeover bid.

    Qualcomm could lose 30% of workforce
    Agree with the above. I've been saying for years that Broadcom is the Valeant of semiconductors - although with slightly better ethics. It should be noted that Valeants downfall came after it's failed hostile bid for Allergan, as the contentious battle with Allergens management is partly what churned up some of the ethical issues at Valeant. I'm wondering, if Broadcom's bid for Qualcomm fails... if history will rhyme.

    0 Not allowed!
     

  6. #6
    Admin Daniel Nenni's Avatar
    Join Date
    Aug 2010
    Location
    Silicon Valley
    Posts
    4,096
    Thumbs Up
    Received: 754
    Given: 2,093
    Quote Originally Posted by raghu78 View Post
    I think BCOM takeover of QCOM will basically kill off innovation at QCOM and the mobile industry will lose an innovation powerhouse. Its a horrible thing for the mobile industry if the takeover is approved and it manages to clear regulatory hurdles. BCOM will almost surely kill ARM server projects which have good potential. QCOM's licensing business could also be severely affected. The BCOM management will focus on just financial engineering. Earnings , P/E and other number stuff. They do not care about real engineering and innovation. They will layoff massive number of employees at QCOM. QCOM shareholders would be stupid to approve this takeover bid.

    Qualcomm could lose 30% of workforce
    I think Avago cut about 2,000 people when they acquired Broadcom, which in my opinion was a good thing. Broadcom had some fat and now I see many new companies with former Broadcom people behind them. Avago did kill some groups but they sold others. The Broadcom IoT group for example went to Cypress which is a much better place for it. I don't recall who bought the server group but I would expect it found a better home. All-in-all I feel the Broadcom acquisition and resulting industry disruption, was for the greater good of semiconductors, absolutely.

    In my opinion QCOM has even more fat and even more new innovative companies will result and again it will be for the greater good, my opinion.

    Bottom line: QCOM shareholders would be stupid to turn down $100 for a $60 stock.....

    0 Not allowed!
    Now available in print or Kindle: "Mobile Unleashed: The Origin and Evolution of ARM Processors In Our Devices"

  7. #7
    Admin Daniel Nenni's Avatar
    Join Date
    Aug 2010
    Location
    Silicon Valley
    Posts
    4,096
    Thumbs Up
    Received: 754
    Given: 2,093

    0 Not allowed!
    Now available in print or Kindle: "Mobile Unleashed: The Origin and Evolution of ARM Processors In Our Devices"

  8. #8
    Top Influencer
    Join Date
    Aug 2014
    Posts
    339
    Thumbs Up
    Received: 166
    Given: 0
    Qualcomm is ripe for disruption. Some sort of transaction could be the catalyst.

    While money is the motivator for shareholders, there is some question of what the business model would be. Would Qualcomm shift into operating a cash cow for the milk, which would require little R&D resources? Or is there some other plan to unlock value?

    0 Not allowed!
     

  9. #9
    Admin Daniel Nenni's Avatar
    Join Date
    Aug 2010
    Location
    Silicon Valley
    Posts
    4,096
    Thumbs Up
    Received: 754
    Given: 2,093

    0 Not allowed!
    Now available in print or Kindle: "Mobile Unleashed: The Origin and Evolution of ARM Processors In Our Devices"

  10. #10
    Blogger Eric Esteve's Avatar
    Join Date
    Nov 2010
    Location
    Marseille, France
    Posts
    802
    Thumbs Up
    Received: 111
    Given: 106
    Quote Originally Posted by raghu78 View Post
    I think BCOM takeover of QCOM will basically kill off innovation at QCOM and the mobile industry will lose an innovation powerhouse. Its a horrible thing for the mobile industry if the takeover is approved and it manages to clear regulatory hurdles. BCOM will almost surely kill ARM server projects which have good potential. QCOM's licensing business could also be severely affected. The BCOM management will focus on just financial engineering. Earnings , P/E and other number stuff. They do not care about real engineering and innovation. They will layoff massive number of employees at QCOM. QCOM shareholders would be stupid to approve this takeover bid.

    Qualcomm could lose 30% of workforce
    I agree with this too!
    Broadcom acquisition of Qualcomm should not happen, and will not happen.
    Would this acquisition happen, who would get benefit?
    - Apple as Broadcom is expected to halt the Qualcomm suit, even if QCOM should win against Apple
    - Intel would be very happy too, if/when Broadcom would stop ARM based servers product line
    - and Broadcom, as they could quickly extract a lot of money from QCOM, detrimental to innovation and the workforce!

    Qualcomm is one of the very few real innovators of the semiconductor market, it would be a pity to see this innovation beeing killed...

    1 Not allowed!
    Eric Esteve - IPnest (IP Marketing & Survey & Strategy)
    +33 608 130 656

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •