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.
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 Rejects Broadcom's Acquisition Offer
Qualcomm's board of directors today unanimously rejected Broadcom's Nov. 6 offer to buy the company in a deal that would have been valued at approximately $130 billion.
Broadcom Takes Aim at Qualcomm with Unsolicited $130B Bid
Broadcom today made an unsolicited offer to buy Qualcomm for $70 per share, a deal valued at approximately $130 billion. According to Broadcom, the merged entity would be a diverse communications semiconductor company that would be able to accelerate innovation, deliver more advanced products, and create compelling financial savings/efficiencies.
FTC Accuses Qualcomm of Anticompetitive Behavior
The U.S. Federal Trade Commission today filed a complaint against Qualcomm, alleging the chip-maker uses its market position to monopolize the sale of cell phone baseband processors.