Skip to main content

Qualcomm will pay $2 billion to end failed acquisition of NXP

By

Qualcomm has finally given up on buying NXP Semiconductors, a Dutch company known for automotive and IoT chips, which it’s been trying to acquire for nearly two years. The deal has long been held up by the Chinese government, and now, Qualcomm has said it will scrap the agreement altogether rather than continue the uncertain fight toward a completed acquisition. In doing so, it’ll have to pay a breakup fee of $2 billion.

The two companies initially entered into a deal in October 2016, with Qualcomm agreeing to pay $47 billion for NXP. The deadline to close the deal has been extended many times since then, as the companies wait for China to approve or deny the merger; every other country reviewing the acquisition granted its approval.

With no answer from China, the deal will once again hit its deadline tonight, but this time Qualcomm doesn’t plan to extend it. The agreement is still valid until midnight ET, so it’s possible the acquisition will still go through; but China would have to approve the transaction within the next six and a half hours for that to happen. “We intend to terminate our purchase agreement to acquire NXP when the agreement expires at the end of the day today, pending any new material developments,” Qualcomm CEO Steve Mollenkopf said in a statement announcing the company’s third quarter earnings today.

Though Qualcomm will have to pay a breakup fee for letting the acquisition fall through, it also frees up the cash it had set aside to pay for the NXP deal. It plans to put $30 billion toward a stock repurchase program.

The bigger downside for the company is that, without NXP, Qualcomm is even more reliant on its existing product portfolio at a time when it’s under a legal assault across the globe for allegedly anti-competitive patent licensing practices. The company maintains a commanding lead in the mobile processor and modem space, but the IoT and automotive markets — both of which Qualcomm competes in too — are still taking off, and the breakup of this deal means fewer ready-to-go resources for Qualcomm.



from The Verge - Teches https://ift.tt/2JTHtR3
Labels:

Comments

Post a Comment

Popular posts from this blog

Magic Leap is shipping across (most of) the US

By
As Magic Leap holds the first developer conference for its Magic Leap One mixed reality headset, that headset has started shipping across the contiguous United States, instead of in a set of select markets. The Magic Leap One Creator Edition costs $2,295, just like before, but there’s now an installment plan that starts at $96 per month. All orders are supposed to arrive within 60 days. The Magic Leap One Creator Edition went on sale in early August, and while Magic Leap has touted it as a fully functional device, it’s basically meant for people who want to design apps, games, or art for mixed reality. We were ambivalent toward the hardware, which we found limited, and we noted that Magic Leap hadn’t shown off a lot of material that showcased its potential. The company’s developer conference keynote has revealed several new projects. Among other things, Spider-Man studio Insomniac Games is building an experience that will let you grow a holographic creature on your tabletop, and...
Post a Comment
Read more

The company behind the adorably doomed robot Kuri is shutting down

By
Less than a month after Mayfield Robotics said it was stopping production on its Kuri home robot, the company announced today on its blog that the company will be shutting down. Mayfield Robotics launched in 2015 as part of Bosch’s Startup Platform, but struggled to integrate with and find a business fit within Bosch. Since the cancellation of its Kuri robot, Mayfield Robotics had been looking for external partners for long-term technology development, but was unable to find investment to support its future. The company will cease all operations by October 31st. We first met Kuri at CES 2017, and it wasn’t yet able to showcase all the features it was promised to have in the future. The robot was supposed to have smart assistant functionalities like an Amazon Echo, but with a much cuter face and movable body. Promo videos showed it working as a moving home security camera that was controllable through the Kuri app, but in the demonstration we saw, it only had as much functionality a...
Post a Comment
Read more

Amazon’s plans for a New York office are under new scrutiny

By
A month ago, when Amazon announced that it would build regional offices in New York and Virginia at great expense to the taxpayers there, I wrote that it had misunderstood the moment : Perhaps the furor over Amazon’s regional offices will blow over. But it’s hard not to feel today as if the company misread the room — overestimating the public’s appetite for a billion-dollar giveaway to one of the world’s biggest companies, and underestimating the public’s ability to raise hell on- and offline. Amazon may yet feel that pain, in the long run. Today, Amazon met the room: 150 protesters who showed up to the first New York City Council hearing about the plan. According to reports from the scene, demonstrators’ concerns start with the $3 billion in incentives that New York plans to give Amazon in exchange for locating there — and, it says, creating 25,000 jobs. Here’s Leticia Miranda in BuzzFeed : ”You’re worth a trillion dollars,” New York City Council Speaker Corey Johnson told the ...
Post a Comment
Read more