U.S. chipmaker Broadcom is seeking to sell one its wireless-chip subsidiaries, The Wall Street Journal reports today, citing unidentified sources.
The San Jose, Calif.-based company is working with Credit Suisse to search for a buyer for its radio-frequency subsidiary which could be valued at $10 billion, the WSJ reports.
Today’s report doesn’t specifically mention any potential suitors for Broadcom’s RF business, but the writing is on the wall about Apple potentially being interested…
Broadcom looking to sell its RF unit. Apple has already been looking to do its own RF, so agree they are a likely candidate to purchase. https://t.co/WvCYqMCRYB
— Ben Bajarin (@BenBajarin) December 18, 2019
Apple is in the process of building its own in-house modem business, and recently acquired Intel’s smartphone business to expedite that process. An acquisition of Broadcom’s RF unit meshes nicely with Apple’s expanded networking projects. Whether Apple is prepared to spend upwards of $10 billion on the acquisition remains to be seen.
MacDailyNews Take: Such an acquisition would comfortably exceed Apple’s largest-ever purchase (Beats Electronics for $3 billion) by a factor of 3.
See also: ‘Very big’ Apple acquisition looms; ‘people will be shocked’ – November 5, 2019