'Crisis' Qualcomm will compromise?
Qualcomm said Qualcomm has been slightly passive in the face of Broadcom's offer, and Qualcomm said the company has received the non-binding takeover offer from Broadcom Corp., which Qualcomm Board of Directors, in consultation with its financial and legal advisors, will evaluate Qualcomm shareholders in the best interests of the action taken Qualcomm will not comment further until its board of directors to complete its review.
As we all know, in the era of 3G / 4G Qualcomm has a large number of core IP, is the standard customizer, in order to obtain the business model patent royalties profit, but with the advent of the 5G era, Qualcomm's strengths are being weakened, Qualcomm The business model has also encountered serious challenges in many markets continue to encounter antitrust litigation, the current lawsuit between Apple and Qualcomm has not yet ended.
Qualcomm think tank senior analyst, because the era of high ventilation, the most powerful has passed.Now, the profitability of Qualcomm much worse.On November 2, Qualcomm released the company as of September 24, 2017 2017 Choi Fourth quarter and fiscal year earnings report.Export reports, Qualcomm fourth-quarter revenue of 59 billion US dollars, down 6.2% from the same period a year earlier, 5%; net profit of 200 million US dollars, a year earlier Nine billion U.S. dollars dropped 89%.
Although Qualcomm has certain advantages in 5G and other communications technologies, Qualcomm has 5G commercial window with two years, but also in the face of competition from Intel, MediaTek, Huawei and other manufacturers, the 3 / 4G era glory Can continue or unknown.
In such a state will sell itself to Broadcom, may be able to integrate new markets, after all, the acquisition represents the will of the majority of shareholders or capital, and ultimately the possibility of success.Golton further said the Qualcomm board of directors and management Has continued to implement its strategy to enable companies to focus on investing in opportunities that will extend their leadership in the mobile space to new areas while maintaining financial soundness and a good return on capital program.Although Qualcomm is currently in constant technical product Extended to other areas, but the actual core revenue is the mobile terminal market.
In fact, according to sources, Broadcom plans to acquire Qualcomm has lasted several months, is expected to have been acquired on the issue with Qualcomm, but led to the refusal of Qualcomm.Analysts believe that this Qualcomm again refused to offer the possibility of very Large Qualcomm shares per share as low.On Monday, Qualcomm shares closed at 62.52 US dollars, up 1.1%. Qualcomm shares in 2014 had exceeded 80 US dollars, in December 2016 exceeded 70 US dollars, subject to patent disputes Qualcomm shares have fallen 16% from the beginning of the year to the present.
The source said Broadcom announced the acquisition of Qualcomm news, the purpose is to get the support of Qualcomm shareholders, Broadcom may be through the proxy battle to get some Qualcomm board seats, so that the Qualcomm board of directors to support the company's acquisition of the proposal. Qualcomm The annual general meeting of shareholders will be held in March next year. The company's nomination of the next board of directors is expected to take place sometime in December of this year.
'Snake swallow like' brought the conjecture
Today's Broadcom is in fact the acquisition of the original Broadcom, but also retains the name of the chip company Avago (Avago) .515 by the end of 2015, Singapore Anwar Hi-Tech announced the acquisition of 37 billion US dollars of the "snake swallow as" chip manufacturing Broadcom, became the largest semiconductor acquisition of the time, the trader is exactly Hock Tan (Hock Tan).
Following the acquisition of Broadcom and the formation of New Broadcom, Hock Tan from Avago joined the combined company as CEO. Hock Tan turned his focus on technology research and development with a strong engineer culture and a 'UCLA school-run' Broadcom transformation into everything to the market and revenue in line, let Broadcom mobile phone SoC business after the complete failure of the decline came out.To let Broadcom in the field of RF SoC deep accumulation and Avago high in the field of RF front-end device is very good Well integrated together, New Broadcom began to achieve good earnings and rising stocks.
However, a lot of people are skeptical about whether Broadcom can once again do the same thing. After all, Broadcom's $ 6 billion acquisition of Brocade was not approved yet, Month.Other analysts believe that this involves political factors.Recently, US President Trump and Broadcom Hock Tan announced at the White House Broadcom's headquarters will be moved back to the United States. Broadcom operations headquarters has been located in San Jose, California, but two years ago Trump is using a low tax policy to attract Broadcom back to the US Hock Tan, Broadcom's chief executive, said at the time that the Republican tax reform plan was due to the company's decision to relocate its headquarters back to the United States one.
Of course, even under the influence of the capital market, Qualcomm's board of directors agreed to the acquisition, Broadcom and Qualcomm to achieve a smooth merger is not easy, because it needs to consider whether monopoly, the national government will grant and other issues.China Alliance Secretary-General Wang Yanhui mobile phone, Many people think Broadcom's biggest obstacle to the acquisition of Qualcomm will be the United States, the European Union and China's antitrust investigation, in fact, this is a matter of concern, because the acquisition of the United States did not do any harm, although Broadcom acquired Qualcomm, the two companies almost monopolized the mobile phone chip However, there are not many overlapping businesses in areas other than wifi. If the United States agrees to takeover, the probability of opposition from the EU and China will not be large. This has not happened in history.
Perhaps as Broadcom CEO Hock Tan said, innovation in the semiconductor industry is slowing down, the acquisition may be the biggest source of growth for the company even if Broadcom acquired Qualcomm, I believe the future will continue to mergers and acquisitions over the past few years astronomical M & A has proved this point. If the impact on the development of China's semiconductor industry continues to deserve study, although the IC industry in China has developed rapidly in the past few years, its voice in the industry is still too small to reach the position that can affect the rules. Including the strength of the more and more Huawei Hass on the same stage.
Once the acquisition of Qualcomm Broadcom finally completed, the new company will become the industry leader in many fields. Broadcom excels in wired communications, Qualcomm is focused on wireless communications, Broadcom and Qualcomm mergers and acquisitions if successful, it will be a strategy to bring a Plus a greater than two effects, wired + wireless, patented interoperability.In addition, Qualcomm's baseband chip, you can make up for Broadcom's business deficiencies.Especially critical, Qualcomm and Broadcom merger, the future of Apple, Samsung Electronics, the main chip business will be Almost completely in the hands of the double pass, the dual force in the field of mobile formed by the force will be 1 + 1> 2, In addition, the arrival of global 5G communications, the merger will also enhance their respective strength in the field of 5G.So the semiconductor industry has history The largest deal since the merger can smooth sailing it? Qualcomm's annual general meeting of shareholders will be held in March next year, the company's nomination of the next director is expected to be conducted in December this year, if Hock Tan interested, I believe the latest will There is the answer.