Bolaji Ojo, EETimes
10/24/2016 10:43 AM EDT
Hard questions are arising. It comes back to finding the justification for this deal. Does this deal really make sense for Qualcomm?
Acquisitions used to be closely guarded events held behind closed doors with severe penalties for any leakages to even news organizations. Not anymore.
The semiconductor industry has known for several weeks now that Qualcomm Inc. wants to buy Dutch chipmaker NXP Semiconductor N.V. A deal could be announced this week, turning Qualcomm overnight into the largest supplier of chips to the global automotive industry and the world’s third largest chip company behind Intel and Samsung.
Talk of a Qualcomm-NXP deal comes in the wake of historic consolidation amid a sense of urgency to improve operational competitiveness in a maturing landscape. Initial speculations from a Wall Street Journal report were that Qualcomm would pay about $30 billion for NXP but the target’s market value has since shot up above $36 billion.
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