Investment advisory firm recommendation could force Broadcom to negotiate deal with Qualcomm

Institutional Shareholder Services (ISS) is an advisory firm that recommends to mutual funds, hedge funds and other big institutional investors, how they should vote on certain company matters. On Saturday, ISS weighed in on the proxy battle between Broadcom and Qualcomm related to the former’s $82 a share bid for the latter. As we told you a little over a week ago, Qualcomm rejected Broadcom’s “best and final offer” of $82 a share for Qualcomm. That deal is structured so that Qualcomm holders receive $60 in cash and $22 in Broadcom stock for each Qualcomm share they own.

Besides taking …


Qualcomm unveils 2Gbps X24 modem, hinting at 7nm Snapdragon 855 for the Galaxy S10

Despite its spats with Apple, and the subsequent loss of one of its biggest clients to Intel, Qualcomm remains the top dog when it comes to cellular connectivity, and it just announced the first wireless modem that can hit 2 Gbps 4G LTE downloads, the X24, and the first chip announced to use the 7nm production process, ready to go into “commercial devices” by year’s end. 

That’s much faster than the X20 in Snapdragon 845 which is arriving with Galaxy S9. That one can take advantage of up to 1.2 Gbps speeds, just like the current top modem, found …

Verizon, Nokia and Qualcomm complete first 5G call using 3GPP-compliant NR technology

The other day, we told you how Verizon Chairman Lowell McAdam and KT chairman and CEO Chang-Gyu Hwang connected on the first “pre-commercial” 5G video chat during the Super Bowl. As carriers continue the testing process for 5G, today Big Red announced that along with Nokia and Qualcomm, it completed a 5G voice call. With this action, Verizon becomes the first carrier to make such a call using 3GPP-compliant 5G New Radio (NR) technology over licensed spectrum

The call was made over Verizon’s millimeter wave spectrum using Nokia’s 5G network technology. The device used was a 5G NR prototype …

Qualcomm and Broadcom to meet on Valentine's Day to talk marriage

Qualcomm has told Broadcom that it has rejected its “best and final offer” of $121 billion because of several factors. One is valuation. Qualcomm believes that it is worth more than a cash and stock bid of $82 a share. In addition, Qualcomm has stated that if a deal is agreed to and government regulators refuse to clear it, the company will be “enormously and irreparably damaged.” As a result, the company wants to have a break-up fee in place that is higher than the usual 3%-4% of the transaction’s value. Broadcom has reportedly agreed to an $8 billion fee, which is 6% of the deal’s value.

As …

Qualcomm says it will lose two big customers if acquired by Broadcom

Last Thursday, we told you that Qualcomm had rejected Broadcom’s $121 billion offer to buy the company. The $82 a share bid includes $60 in cash and $22 in Broadcom stock, and reportedly features a higher than average break-up fee. This is a cash settlement that Qualcomm would receive in case U.S. regulators decide not to clear a transaction between the two chipmakers. In a published letter from Qualcomm Chairman Paul Jacobs to Broadcom president and CEO Hock Tan, Jacobs mentioned two things that prevent Qualcomm from agreeing to the deal. One is valuation, and the second is “deal certainty.”

Qualcomm …

Qualcomm rejects new bid from Broadcom

On Monday, chipmaker Broadcom raised its unsolicited bid for Qualcomm to $82 a share from $70. Broadcom said that it would pay $60 in cash and $22 of Broadcom stock for each Qualcomm share. On Thursday, the latter’s Board of Directors rejected the bid, stating that it undervalued the company, which is known for its Snapdragon line of chips for mobile devices.

In a letter from Qualcomm Chairman Paul Jacobs to Broadcom president and CEO Hock Tan, Jacobs wrote that Qualcomm has offered to meet with Broadcom to “address the serious deficiencies in value and certainty in its proposal.” However, …

Qualcomm already has 18 manufacturers ready to use its 5G modem next year

Qualcomm announced today that the Qualcomm Snapdragon X50 5G NR modem series will be found inside devices manufactured by at least 18 different manufacturers. These companies will use the component to “deliver next-generation 5G mobile experiences to consumers.” The  Snapdragon X50 5G NR modem will start shipping in 2019, and will help usher in speeds in the multi-gigabit per second range, with significantly lower latency than seen with today’s 4G LTE networks.

The chip designer says that 5G enabled smartphones will connect to public Wi-Fi without having to log-in. Qualcomm says …

Rumor: Broadcom to raise bid for Qualcomm to $80-82 a share from current $70 offer

According to a report published today, Broadcom is going to raise its unsolicited bid for fellow chipmaker Qualcomm to $120 billion from the current $103 billion offer that was put on the table last November, and rejected by Qualcomm. That deal works out to $70 a share and consists of $10 a cash and $60 in Broadcom stock for every share of Qualcomm. Broadcom is reportedly considering a new bid worth between $80 and $82 dollars a share. There is no indication how much cash will be included in a revised offer.

In addition to raising the value of its bid, Broadcom is said to be enticing Qualcomm …

Qualcomm and Broadcom are the latest Apple suppliers to spell earnings gloom

Buried inside the latest earnings reports of Qualcomm, Broadcom, and other big Apple suppliers, lies yet another tangential evidence that Apple’s Q1 forecast may be lower than analysts initially expected. Qualcomm, which is in a patent feud with Apple over breaking the exclusivity agreement for wireless modem supplies prematurely, mentioned in its earnings report that sales for a big “thin modem” client will be worse than usual, even counting seasonality factors for the January-March period.

That big modem customer is more than likely Apple, as the iPhones for Verizon and Sprint …

Lenovo, Xiaomi, other smartphone makers to buy $2 billion worth of Qualcomm components

After being hit with a $1.2 billion fine for paying Apple to keep its LTE modems exclusive, Qualcomm announces a $2 billion deal with Chinese smartphone makers.

Lenovo, Xiaomi, Oppo, and Vivo have signed a deal with Qualcomm to buy $2 billion worth of components over the next three years. According to the US company, this is a non-binding agreement, which means either party can break off negotiations at any time.

The official statement doesn’t mention Qualcomm’s mobile processors, but RFFE components that are designed to enable OEMs to build more complex mobile devices at larger scales. …