Qualcomm buys Atheros for $3.1 billion in phone, tablet push
updated 11:00 am EST, Wed January 5, 2011
Qualcomm takes over Atheros for mobile tech
Qualcomm today quickly validated rumors and said it would buy Atheros for the equivalent of $3.1 billion in shares. It characterized the acquisition as a "natural extension" of its mobile technology into other device areas. The deal will see Atheros' current CEO Craig Barratt become president of a Networking and Connectivity group inside the larger Qualcomm company.
The deal if approved by regulators should be completed sometime within the first half of 2011.
A merger of the two companies could potentially give Qualcomm a significant boost in tablets, where it has so far had relatively little impact. Atheros has primarily focused on short-range wireless that has normally only been a secondary concern for Qualcomm's primarily cellular-driven hardware. The newly acquired company just this week unveiled an 802.11n Wi-Fi and Bluetooth 4.0 combo chipset that can perform better than much of what Qualcomm has today.
It's not clear how the deal will affect Atheros' supply of chipsets to other companies. Most of its clients primarily make computers, but some such as Apple might either have an established mobile platform or have just gotten started and might face renegotiations or possible conflicts of interest if Qualcomm downplays wireless chips that aren't tied to its full-fledged processors.
