Best possible option short term for QC is a broad market crash a la 2009. Talented engineers will have less reason and ability to bolt, with none of the VC excess to fund nonsensical sharing economy startups. (Seriously, Zingy? The on demand dog walking service. Is that leash sharing? Subleashing??). Market will provide cover for missed targets and layoffs, while providing RSU showers at less cost so execs "get real paid" (cue Beck song) when the bear market ends
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What's going to differentiate when it comes to automotive? Power? Nope. OS/platform? Nope. Lte connectivity? OK. Sounds like a reclassification of smartphone revenue.
Short term - cost headache and significant distraction for QCT. CSR was unable to execute either reliably or with speed on any new product - weak managers and project management need removing. Integration project Rome expected to end in layoffs significantly larger than QCT own target. Engineers on the coal face with talent likely to jump ship within months rather than trust the integration teams to do a good job.
Long term - acquired Audio capability is good for Q if integrated well. Auto probably most useful acquisition but still mostly only valued due to long qual process. IOT itself unfortunately will prove a poor purchase (keep the receipt)
Specific details about Atheros acquisition please..
I would think there is some IP that QTL can license out and make some money.
Which is precisely where the ball seems to always get dropped. QCOM acquires, but no one seems to be responsible for properly on-boarding the acquisition, letting them know what QCOM support organizations are available to them, integrating their strengths to the proper groups within QCOM. Again, who is responsible internally for following through with these essential elements of an acquisition? ATHEROS is a glaring example of how not to do an acquisition!
If this is done well, could prove pretty accreditative. CSR has a very good"stand-alone" autonomous GNSS solution used in middle of the rung wearables - notably Microsoft band, Fitbit Force and some truly high end wearables like Polar V600. They also have much higher margin multi frequency multi constellation GNSS solutions using not only L1, but also L3 and L5 used in agriculture, airplane and survey navigation. Also propereitary audio solutions and highest on the power performance curve BTLE solutions. Key is acquisition has to be managed properly.
Success depends on whether there is a responsible marketing organization tasked with such marketing. It is not clear whether QCOM is a Matrix organization or a functional organization at this point. The former type of organization seems to not be accountable for any negative results. VP on down should be accountable for the results of their reports and be removed if this organizations do not perform. Period.
Long live the subprime auto loan bubble. IoT devices which help the repo man would be a higher growth market
Success also depends on selling IoT accessories to major parts manufacturers like Magna, and design engineers at Ford, GM, etc.
Yes, even as we speak the corporate lawyers are burning electricity this weekend, looking for loopholes in SM's 51 MM retention bonus....
Who the hell makes these acquisition calls anyway? All we have seen in the Bay Area is acquisitions that are quickly dismembered after spending buco bucks on acquiring and relocating the teams. Unfair for the acquired and for the existing teams. Some serious scrutiny should be focused on the groups responsible for acquisitions.
Is success predicated on continuing auto sales bubble?
CSR acquisition started way before the rapid down turn. QC management needed more growth in IOT. Now that mobile has fallen off the cliff, CSR acquisition no long makes sense, because in the short term, it adds to more headcount and more headache while dealing with layoffs, and in the long term, it is an expense center to be closed down.