Hock Tan, chief executive of Broadcom Semiconductor, said the media exposure during the past few days was quite high. First, he complained that Qualcomm disregarded the rights and interests of investors and did not want to hold talks with Broadcom as soon as possible on weekends. However, on the occasion of the final conclusion of the first negotiation between the two sides on February 14, Chen Fuyang again visited CNBC on the morning of the meeting and tried its best to defend Broadcom's acquisition of QUALCOMM. The key points are as follows: First, Qualcomm's Investors are no better than 4 years ago, because Qualcomm shares fell, investors 11% poorer than 4 years ago; relatively, Broadcom investors but more money than 4 years ago, Broadcom shares rose, investment Second, NXP can not solve the problem of Qualcomm, Qualcomm's problem lies in outdated patent licensing business model is a fragmented business model, Broadcom intended to be certain Time to reset the business model, so that it can continue to operate .Third, Qualcomm once in the process of transition to 4G fall, is bound to make the same mistake in the process of transition to 5G.Unfortunately, In view of the past two years and more, Qualcomm's patent licensing business model challenged by the world's major regulators, and since 2017, Qualcomm's largest customer Apple (Apple) against this and Qualcomm court, the court confrontation, not only Qualcomm this set of authorized business model once again be on the table to discuss, but also let Broadcom Chen Fuyang found cut into the low-cost acquisition of the opportunity in the industry has not yet on the machine pricing or chip pricing model to make a conclusion, Chen Fuyang has been interviewed Bloomberg, in the media to shout loudly to stop Qualcomm patent patent monster (patent troll) continue rampant. Chen Fuyang's proposition should never be enemies with customers, this point most businesses should be able to agree, but Qualcomm In practice, its perception of patent payment, I am afraid too overestimated its own position, so if Qualcomm is the arrogant attitude of sacrifice I am afraid it would not be overemphasized for a long time, Qualcomm to receive the industry relatively high As a matter of fact, this is not just a matter of one to two years. From the so-called CDMA era, , Has led to a lot of lawsuits and regulatory agencies to investigate the move, but did not think the last will evolve into the current confrontation between Apple and Qualcomm, and Broadcom take advantage of the opportunity to buy However, Qualcomm's patent licensing business model may not only be Broadcom Chen Fuyang hands on the reform, why Qualcomm can not change it? It depends on the determination of Qualcomm: in the end to hand over the company? Or take a step back to the brighter future? Said Chen Fuyang said Qualcomm transition to 5G will repeat the same argument, I hold Skepticism. Chen Fuyang to derogate Qualcomm 5G is why? Even if Chen Fuyang has the intention to reform the business model authorized Qualcomm patents, but the real hard to believe that once Broadcom successfully acquired Qualcomm, will be the value of Qualcomm 5G assets cut out? This Block asset business can be said to be one of Broadcom and Qualcomm has not overlapped with one of the few businesses, but also Broadcom difficult to look it up, is it said that Chen Fuyang grapes can not eat that grape sour? Back to Broadcom investors flies better, Qualcomm investors are poorer This claim up, more close to Chen Fuyang want to resort to Like, that is March 6 Qualcomm shareholders vote, elected Broadcom's board of directors, or Qualcomm's board of directors representatives? From November 2017 Broadcom for the first time raised the price of 70 US dollars per share, then increased in 2018 The purchase price to 82 US dollars per share, and claimed to be the final final bid, in view of the current price of Qualcomm is still 65 US dollars level, Qualcomm management team under investor pressure to meet with Broadcom as soon as possible, the two sides set at February 14 However, the meeting between the two parties may only be formalized more than substantive because the bottom lines of both parties have already been clarified in the earlier statement that Qualcomm claimed that Broadcom bid is too low to take into account NXP, 5G and Apple Qualcomm after the reconciliation of the real value of Broadcom Chen Fuyang CNBC also responded to the above three points of no value at all, 82 US dollars per share asking price is already the final bid, will not increase further. So, both sides meet what good talk Looking forward to March 6 Qualcomm shareholders meeting, compared with Broadcom to raise hundreds of billions of dollars in silver bullets load, comparable to the size of the Sun Zhengyi Softbank Prospect Fund, Tong now has to come up with the prospect of an independent operation of the company to convince shareholders that NXP's merger case now has the last level off the mainland regulatory agencies, before and after it took 15 months to pass the global regulatory authority .This may be able to get To contend with Broadcom's claim that it would allow global regulators to buy Qualcomm within the next 12 months and Broadcom also agreed to take a $ 10 billion regulatory breakup fee for acquisition of Qualcomm, Care.
