Industry Expert Blogs

The Broadcom bid for Qualcomm is the biggest, boldest semiconductor deal to date. Just when we thought semi M&A was cooling off, this deal is a years worth of deals rolled into one. Not only does this deal upset the current balance between chip suppliers and customers, it would create a giant entity smack in the middle of IOT, AI, AR & VR roadmaps.

Broadcom has gone through a huge number of acquisitions and is clearly more focused on squeezing returns for shareholders out of acquired assets than future technology, or organic growth.

This is clearly juxtaposed to Qualcomm's approach. Broadcom is also playing a very smart game taking advantage of current political climates as well as recent drops in Qualcomm's valuation and standing in the industry.Timing is everything in life....

Although the kneejerk reaction is to say the deal won't get done, the reality may be much more complex and surprising much as the current administration does not follow the normal rulebook. We have to throw out the logic associated with years of deal approval and disapproval and focus instead on the current administration's agenda. We think a lot can be learned from recent events that may sway the odds of the deal