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Do you think that Qualcomm bought Nuvia with the expectation that Nuvia's royalty agreement would remain intact? Perhaps they wouldn't have paid as much, or pur
by aspenmayer 2y ago
Do you think that Qualcomm bought Nuvia with the expectation that Nuvia's royalty agreement would remain intact? Perhaps they wouldn't have paid as much, or purchased them at all if the license is able to be terminated in that way.
- michaelt 2y agoI have no idea of the specifics of Nuvia's license. But it's totally common for corporations to make value-destroying acquisitions. Some research suggests 60%-90% of mergers actually reduce shareholder value. Look at the HP/Autonomy acquisition, for example - where the "due diligence" managed to overlook a $5 billion black hole in a $10 billion deal. And how often have we seen a big tech co acquire a startup only to shut it down? Mergers only seem rational because once a mistake is set in stone, the CEO usually has to put a brave face on it and declare it a big success. I could certainly believe during the acquisition process that the specifics of Nuvia's license were overlooked, or not fully understood by the person who read them.
- kergonath 2y agoThen, they should have done their homework because any transferability clause would be in Nuvia’s licensing agreement. Or maybe there is no such language in the contract and Arm is over-extending, but that sounds unlikely.