Broadcom Looking to Get Out Of the Baseband Business
Broadcom today indicated that it is looking to exit the cellular baseband radio-making business. The company is exploring strategic alternatives, including a potential sale or wind-down of its baseband business unit. The company has signed JP Morgan to help it divest the unit. Broadcom said if it is able to successfully sell or wind down the baseband unit, it can save $700 million annually in research, development, and other costs. Broadcom would like to reinvest these savings into its remaining businesses, including small cells, embedded processing, and low-power connectivity. Broadcom didn't provide a timeframe for exiting the baseband business. Broadcom is facing pressure from competitors such as Qualcomm, which excels at integrating 4G baseband radios with application processors.
FTC to Investigate Broadcom's Business Practices
The U.S. Federal Trade Commission today said it is investigating potential anticompetitive negotiating tactics used by Broadcom.
Qualcomm Says Broadcom's Overtures Not Striking Right Notes
Qualcomm today said Broadcom's acquisition offer simply isn't good enough as currently proposed. The companies met earlier this week to go over some of the finer points of Broadcom's $121 billion bid to purchase Qualcomm, and Qualcomm still came away leery that the deal won't work out.
Qualcomm Rejects Broadcom's Latest Acquisition Offer, But Leaves Door Open
Qualcomm's board of directors today unanimously rejected Broadcom's revised bid to acquire the company for $121 billion. Qualcomm's board continues to insist that Broadcom is undervaluing Qualcomm's overall worth.
Broadcom to Cut Up to 1,900 Jobs
Broadcom Limited said it plans to reduce its headcount by about 1,900 jobs. The cuts will be made across Broadcom's global facilities and the company expects to take a charge of $650 million to cover the cost of the cuts.
Qualcomm Says Two Big Buyers Likely to Bail Over Broadcom Tie-Up
Qualcomm warned investors that two of its most important customers have threatened to take their business elsewhere should Qualcomm be acquired by Broadcom. Qualcomm didn't name the customers, but said together they contribute a combined $1 billion in chip revenue.