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Right? I know it's not completely analogous, but the federal government blocks a US company (Qualcomm) from buying another American company (Broadcom) over conc
by Dirlewanger 9y ago
Right? I know it's not completely analogous, but the federal government blocks a US company (Qualcomm) from buying another American company (Broadcom) over concerns about the Chinese somehow (which I still don't fully understand), but allows a Taiwanese company to buy an American network hardware division? I guess the government doesn't give a shit about consumer products.
- che_shirecat 9y agoQualcomm/Broadcom was mostly just political grandstanding
- sushid 9y ago> the federal government blocks a US company (Qualcomm) from buying another American company (Broadcom) over concerns about the Chinese somehow (which I still don't fully understand) I'm not saying that Trump's executive order is justified (and the market predicted that Qualcomm would reject a hostile takeover attempt) but you have a few things wrong there. 1. The acquisition would be the other way around (as in Broadcom taking over Qualcomm) 2. Broadcom's parent company is a Singaporean entity. So yes, it's an American company but its parent company is Singaporean. 3. Broadcom's M&A strategy is very short sighted. It usually strips the acquisition target's R&D costs and improves its bottom line in the short term. 4. Qualcomm has a pseudo monopoly on mobile chips. All high end mobile phones use their chips. If it loses out on its future 5G technology due to a shrinking R&D budget, US loses its market dominance possibly for good.