Broadcom seeks to offload its RF chip unit for upwards of $10 billion; Apple a potential buyer

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.

Chance Miller for 9to5Mac:

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…

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

5 Comments

  1. Film bulk acoustic resonators to filter out radio transmissions is what Apple would be bidding for. It doesn’t sound very exciting or something that’s going to have big investors clapping about. It’s not the spectacular acquisition I would be hoping for Apple to do even if it is a potentially useful thing. I would like Apple to pursue some extreme battery tech or the new Ultrasense acoustic switches for all their wearable devices. I would like to see a big splash acquisition that has Wall Street salivating. Yeah, but what do I know? Not so much. Whatever Apple does buy, I’m sure Wall Street will be disappointed and claim Apple paid too much for a company of little value as what they claimed with Beats. Whatever.

    1. It seems in line with many of Apple’s moves to make their product gain more margin, while being able to keep at or lower pricing levels (iPhone 11 anyone)?

      The phone market is mature so it’s about making or maintaining margins while lowering pricing if possible, to gobble other’s share.

      For Apple to expand share in Asia, India, Brazil and beyond, lower prices with superior tech is going to be required. Is it sexy? No. Does it work? Yes.

      I would love to see Apple go all-in and acquire Sony, gaining all the movie and TV content, PS4 and camera and display tech. Apple has shown they can acquire a powerful brand like Beats and not destroy or dilute it, but rather, support it with tech it can use from the mothership.

      But at $10b who’s smashing Apple can’t do both?

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