OT- QCOM breakup?

[Coronita]

Intel is gearing up to fight against Qualcomm big time. They took a lot of our employees over the past few months, by throwing a pretty big comp package at them. Looks like they are trying to acquire part of Spreadtrum too.

I’m surprised no one has tried to take over ARM yet or Nvidia or finally put AMD out of its misery.

That NXP and Freescale tie-up will be interesting. Use to be a $20/share stock back in 2012 when they were just starting nfc.

[an]

[quote=Hatfield]Huh? QTL and QCT are still part of the mother ship. QCT is part of the new QTI entity which operates as a wholly-owned subsidiary, and everything still trades as QCOM. I wouldn’t call any of this arms-length.[/quote]
You’re right, they’re still part of QCOM, but they’re legally separated. That’s the whole reason why the put everyone not part of QTL into QTI. My guess is that’s the first step.

[Coronita]

Uh oh…. TSM reported their numbers are coming in light, partly due to Samsung dropping Qualcomm.

http://finance.yahoo.com/news/tsmc-sees-q2-sales-dip-104701958.html

TAIPEI, April 16 (Reuters) – Taiwan Semiconductor Manufacturing Co Ltd (TSMC) on Thursday said revenue is likely to fall in the second quarter from the first, due in part to the loss of business at one of its key customers.

The world’s largest contract chip manufacturer expects a decline of 7 percent to 8 percent in April-June. In the three months prior, revenue was flat on quarter but grew 50 percent on year, pushing net profit beyond analyst estimates.

The forecast comes a week after rival Samsung Electronics Co Ltd said it used its own chips in its just-released flagship smartphone instead of chips from Qualcomm Inc, which contracts a large share of its production to TSMC.

“A key customer’s business loss to an IDM … will negatively impact our business,” TSMC Chief Financial Officer Lora Ho said in a quarterly analyst conference, without identifying the IDM or the customer.

[Huckleberry]

IMO, based on all articles and interviews I have read and seen…

I see a high possibility of company split this time around.

Reasons:

1. The stock price has severely under-performed the market for the last two years.

2. Shareholders are past being patient regarding unlocking the value of the individual QCT and QCL business models. Some of the large hedge and mutual funds have already liquidated their holdings in QCOM, hence the huge stock price drop…

3. Executive compensation is out of whack compared with ROI to shareholders.

4. Company cost cutting practices (layoffs, expense cuts, etc.) have not boosted stock price.

[Huckleberry]

Considering the most recent CNBC news (strategic review of possible split, massive layoffs and organizational restructuring) and the below Wall Street Journal article. I think the odds are in your favor if you bet the company will split by end of year.

http://www.wsj.com/articles/qualcomm-plans-changes-to-company-structure-1437595996

[Author]

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