Semiconductors

Qualcomm slaps Broadcom with two Herculean labors

26 Feb 2018

The chipmaker laid down conditions for agreeing a merger – including boosting the proposed break fee to about $13 bln. Qualcomm is being reasonable but disingenuous. Its suitor would still have two very high bars to clear: raising the $120 bln price, and convincing regulators.

Viewsroom: Chipmaker battle fries M&A circuits

22 Feb 2018

Broadcom has lowered its hostile bid for Qualcomm after its target upped its longstanding offer for NXP. That decreases the chance the two larger rivals can strike a deal – assuming regulators wouldn’t nuke it. Plus: Credit Suisse shines a rare light on Asian investment banking.

Broadcom’s new Qualcomm bid both petty and smart

21 Feb 2018

The chipmaker is reducing its offer per share by 4 pct if its rival completes its sweetened acquisition of NXP. Sure, Broadcom would still be paying more in total. But the $4 bln price cut looks mean and lowers the odds the two sides can ever plug in a friendly transaction.

Qualcomm shows the strain with NXP bid hike

20 Feb 2018

Sweetening its offer for the rival chipmaker looks like an attempt to disrupt Qualcomm’s own suitor even as proxy advisers urge efforts to negotiate a deal. Broadcom’s $120 bln attempt to make a tech monster may yet fail, but Qualcomm’s board is becoming less of an obstacle.

Broadcom’s next sweetener: a bigger breakup fee

14 Feb 2018

The chipmaker's increased $120 bln-plus offer for Qualcomm has finally persuaded its quarry to talk. But the $8 bln of insurance Broadcom is offering in case antitrust regulators in Beijing or Washington block the deal probably isn't enough. History may justify twice as much.

Broadcom ups difficulty level for Qualcomm owners

5 Feb 2018

The chipmaker has raised its hostile bid to more than $120 bln. The merger is no more likely to pass antitrust review unscathed, though. And because Qualcomm’s owners would get roughly a quarter of the combined company, Broadcom’s overpayment becomes a serious risk for them.

NXP has Qualcomm over a barrel

31 Jan 2018

The larger chipmaker’s stock is close to Broadcom’s $105 bln hostile offer price. It might be because investors are warming to Qualcomm’s stand-alone worth. But that vision fades unless Qualcomm closes its own $38 bln deal for NXP. The danger now is raising its bid too much.

Chipmaker M&A exhibits increasingly fuzzy logic

29 Jan 2018

Amid a rash of big deals, Japanese firm Renesas may offer close to $20 bln for U.S. rival Maxim, CNBC reported. Combining the two could generate big savings – but Renesas would need to cut 100 pct of Maxim’s operating expenses to justify that price. That’s called overpayment.

EU makes Qualcomm bid more attractive, less likely

24 Jan 2018

Regulators fined the company $1.2 bln for paying Apple not to buy chips from its rivals. Such levies reduce Qualcomm’s potential profitability, and make a $105 bln bid from rival Broadcom more alluring. Yet it suggests trustbusters may look askance at the combined firm’s power.

Qualcomm slipping away from Broadcom’s grasp

19 Jan 2018

The odds were always long on the chipmaker’s $105 bln unsolicited bid. A new federal probe into Broadcom, Qualcomm’s progress with approvals to buy NXP and souring U.S.-China relations raise them further. Broadcom holds a few cards but its hand would be stronger played elsewhere.

Intel flaws hint at tech “too big to fail” risk

4 Jan 2018

Researchers revealed bugs in the firm’s processors, as well as those of AMD and ARM, potentially making most computing devices vulnerable to hacks. Chipmakers need massive scale to justify huge investments, but a concentrated market means problems can become systemic.

Apple exerts gravitational pull on chipmaker rise

4 Dec 2017

UK-based Dialog lost a third of its value on fears the iPhone maker will build its own chips. Rising sales of smart gizmos have boosted demand for semiconductors, and their makers’ stocks. Rosy valuations downplay the risks for a fragmented sector in a rapidly changing industry.

Broadcom fires board broadside from shaky platform

4 Dec 2017

The chipmaker is nominating 11 directors at Qualcomm, which has rejected its roughly $105 bln unsolicited offer. Only a brave shareholder would replace a board solely to advance a not-yet-financed bid. But the move pressures Qualcomm to engage before its annual meeting in March.

Meg Whitman’s good management of bad business ends

21 Nov 2017

She took over Hewlett-Packard when Silicon Valley's original success story was in unprecedented turmoil with three predecessors fired, a dysfunctional board and a welter of failed deals. By breaking it up, she brought stability. It's a track record that might work in politics.

Marvell suits up well for growing chipmaker wars

20 Nov 2017

The value of cost cuts easily covers the premium in its $6 bln offer to buy rival Cavium. The deal also welds together two sets of mostly complementary business, strengthening the combined company’s portfolio. That should set it up well for further M&A in a consolidating market.

Qualcomm jockeying is all about 5G chip race

14 Nov 2017

It’s no coincidence Broadcom made its $105 bln bid as operators start testing next-generation phone technology. Qualcomm’s heavy investment gives it an edge, and stands to reap rich rewards in a few years. That should stiffen its defense - and raise the odds of a higher offer.

Qualcomm’s rebuff only fuels deal hype

13 Nov 2017

The chipmaker says Broadcom’s unsolicited $105 bln offer “dramatically” undervalues it. It’s part of the M&A ritual. Sure, Broadcom might struggle to lift its price much, and there are antitrust risks. But the pressure’s on Qualcomm to sort out its own issues.

Viewsroom: Broadcom $130 bln bid signals market top

10 Nov 2017

The chipmaker’s hostile tilt at Qualcomm is a rare aggressive move in the sector. Qualcomm has its own issues, awaiting approval for its NXP deal and fighting Apple in court. It all suggests the tech sector is too frothy. Plus: Is Hong Kong losing its moxie as a financial center?

Apple has deciding vote in Broadcom-Qualcomm deal

9 Nov 2017

A dispute over iPhone royalties left U.S. chipmaker Qualcomm vulnerable to rival Broadcom’s opportunistic $105 bln bid. Settling could preserve its independence. The question is whether Apple thinks a bigger Broadcom would be slavishly devoted, or even surlier.

Congressional stick may beat Trump’s China bombast

7 Nov 2017

The president has talked tough about punishing the nation’s largest trading partner, but mostly avoided measures like tariffs. Now some U.S. lawmakers want to make it hard to buy American companies. Such bipartisan legislation poses a bigger risk to Beijing than the White House.