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It is a shame but I think they figured they had to go on a diet or risk an LBO.
by wyldfire 6y ago
It is a shame but I think they figured they had to go on a diet or risk an LBO.
- robocat 6y agoIs this a common scenario? Bet all capital on a new product, and get bought out at the low point in market valuation: before the product has shown promise and the market price has still not recovered? Edit: I am wondering about older companies more than startups (presumably it is more common for startups that look like failing but are actually on brink of success).
- wyldfire 6y agoI don't think it's common, no. In the 1980s I think it happened more often (because they had a lot of assets that weren't reflected in the valuation maybe?). But in Qualcomm's case they were arguably undervalued because of ongoing regulation/lawsuits regarding their licensing practices. IIRC they had shipped their Amberwing Centriq CPU but the reception was kinda lukewarm. AWS ended up introducing Graviton not long after - presumably AWS wouldn't have sourced Centriq if they had their own designs in the works. [1] https://en.wikipedia.org/wiki/Qualcomm_Centriq https://en.wikipedia.org/wiki/Qualcomm_Centriq