Chipmaker Avago Technologies said Thursday that it has agreed to acquire Broadcom, a rival whose semiconductors are used in iPhones, set-top boxes for cable television and other devices, for $37 billion in cash and stock. The companies have little overlap but could combine to offer a range of products to communications companies while gaining greater negotiating power with manufacturers. The deal is the latest in a wave of consolidation in the semiconductor sector as chipmakers look to grow and gain leverage in negotiations with their customers and components manufacturers. “The combination of Avago and Broadcom creates a global diversified leader in wired and wireless communication semiconductors,” Avago President and CEO Hock Tan said in a news release. According to Bloomberg, the transaction is the biggest in the technology industry. Samueli, the owner of the Anaheim Ducks hockey team, serves as Broadcom’s chairman and chief technology officer. The company, which specializes in chips for things like fiber-optic lines and lighting, has been active in buying companies since 2013, including striking a $6.6 billion deal in late 2013 for the LSI Corp., a manufacturer of networking and storage chips. The cash option of the deal values Broadcom at about 24 times last year’s earnings before interest, taxes, depreciation and amortization, significantly higher than in recent acquisitions of semiconductor companies. In other deals that illustrate the extent of consolidation in the sector, NXP Semiconductors agreed to buy Freescale Semiconductor for $11.8 billion in March. [...] Intel was reported to have held recent talks to buy Altera, whose chips are used in radios, automobiles and manufacturing.
Comment on Avago to buy Broadcom for $37 billion
New York Times, San Francisco Chronicle: Business
Thu, 05/28/2015 - 4:37pm
Welcome to Wopular
Wopular is an
online newspaper rack,
giving you a summary view of the top headlines from the top news sites.
Senh Duong (Founder)
Wopular,
MWB,
RottenTomatoes
MoviesWithButter : Our Sister Site
- "Expendables 4" Starts Shooting This Fall, Says Randy Couture at the Arnold Sports Festival more
- “Expendables 4” Gets Funding Interest from “Ip Man 3” Financier more
- "Ip Man 3" Distributor Suspected of Box Office Fraud, Parent Company Loses $200M in Market Cap more
- Yen Targets "Ip Man 4" for 2018 Release; Discusses Film with Director, Producer more
- "Ip Man 3" Shatters Expectations with $72M Opening [China Box Office] more