Kudos to Sascha Segan at PCMag for his enlightening editorial explaining why Broadcom, Ltd.’s unsolicited $130 billion bid for Qualcomm, Inc. is bad news for all mobile users.
On the surface it doesn’t seem like a bad idea at all. Broadcom makes Bluetooth and WiFi chips; Qualcomm makes chips for mobile phones. Having all this manufacturing expertise under one roof should be a win-win for both parties. I think marketing types call it “synergy”?
The problem, as Sascha points out, is that Broadcom isn’t really Broadcom:
“Broadcom” is actually a company called Avago, a spin-off of Hewlett-Packard that, in recent years, has spent as much time and energy buying, dismembering, cutting costs on, and selling off parts of other companies as it has inventing things. This has resulted in great financial performance, but not so much in the way of innovation.
In stark contrast, Qualcomm, Inc. is described by Segan as a thin layer of marketeers keeping a hoard of geeks focused on running a successful business. And there’s no denying the success of Qualcomm; the company has a target on its back only now, and only because ongoing legal battles with Apple have put them in a financially vulnerable position.
For the whole story check out Sascha’s excellent screed at the second link directly below.