Apple seen as likely buyer of Broadcom’s wireless chip businesses

Investment bank JPMorgan says Apple is the most likely buyer of Broadcom’s wireless chip businesses.

Patrick Seitz for Investor’s Business Daily:

“We believe that Apple could be a primary suitor among system (manufacturers) for the whole business, while MediaTek could be an interested party for the RF (radio-frequency) assets,” JPMorgan analysts said in a report Tuesday. “We also do not rule out a scenario where a financial investor could be an intermediary buyer, given high FCF (free cash flow) generation from these businesses.”

Broadcom’s wireless assets include three businesses that could be sold together or separately, JPMorgan said. Those businesses are radio-frequency chips for wireless communications; Wi-Fi, Bluetooth and GPS chips; and touch controller and wireless charging application-specific integrated circuits… JPMorgan analyst Harlan Sur values Broadcom’s wireless chip businesses at $18 billion in total. That includes $11 billion for the RF business, $6 billion for Wi-Fi and connectivity business and $1 billion for the remaining business.

MacDailyNews Take: For some perspective, Apple’s largest acquisition ever was $3 billion for Beats Electronics ($2.6 billion in cash and $400 million in stock) in 2014. See also: ‘Very big’ Apple acquisition looms; ‘people will be shocked’ – November 5, 2019


  1. Apple had a ton of cash when it bought Beats and yet there was so much whining about why Apple paid $3B for Beats. I’d hate to hear the whining about an $11B purchase. Other tech companies spend plenty for acquisitions and it’s just business as usual. Microsoft paid $26B for Linked-In and investors certainly didn’t revolt. I never actually understand that acquisition of a social company, but it didn’t seem to hurt Microsoft, at all.

    1. Actually, Linkedin is very good at persistently asking if you want to use/download their app, or continue using the web version when one visits their site.

      Because of this, they’re also very good a reinforcing my perception that sometimes apps are just a scam. Why would I use your f-n app when the web serves up a good meal of Linkedin?

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