Qualcomm lining up Atheros for buyout
updated 05:55 am EST, Wed January 5, 2011
Qualcomm said in advanced talks
Qualcomm is deep into negotiations to buyout Atheros according to a report [sub. req.] by the Wall Street Journal. People familiar with the matter say that the talks are now at a late stage. After an earlier report on the talks by The New York Times, Atheros shares spiked 19 percent to $44 giving the company a market cap of $3.08 billion.
Qualcomm has around $10 billion in cash that has been generated through its key role in the booming smartphone sector. Its Snapdragon ARM-based processors power numerous phones, while it has also developed its own proprietary technology that is also utilized by phone manufacturers generating additional income through royalties.
Atheros is an attractive take-over target for Qualcomm as its wireless technologies complement Qualcomm’s product portfolio. It is thought that Qualcomm’s position could be bolstered in developing laptop components where Atheros’ Wi-Fi chips are in widespread use, among other areas in which Atheros has profitably exploited.
