Thread regarding Qualcomm Inc. layoffs

Automotive semiconductor increased around 6% last year, not the teens, and NXP's market share feel.

Everybody and their brother are jumping in, competition is increasing.

Qualcomm is paying as higher than market price for a company that is aging and had a pack of younger, hungrier, more innovative, more agile, and lower overhead companies nipping at it's heels.

It's the wrong company to buy.

To say NXP will drag QCOM down is gross misunderstanding of the NXP business. Automotive market is growing in mid teens YOY. Very few segments in the Semiconductor industry can boast of that over the last few years.

2014-2017 was M&A era in semi industry because money was cheap. All these guys foresaw Fed rate hikes, Trump's political decisions and those pressure on the world economy, that's why so many takeovers occurred. M&A took so long that growth rates stalled in many tech companies. Now last moves like buyback and layoffs coming which artificially increased stocks with no innovation, which is a short term solution.

Due to the pressure from investors there are no other instruments any more. Another stock market crash is coming. Even if you escape from layoff now, you wouldn't escape from a huge crash like dotcom crisis. I assume our jobs are safe 1 year more, then the hell is coming

If you read NXP latest earnings, you will understand why this deal is not worth $127.50

NXP needs Qualcomm more than Q needs N. Elliott has already sold 1/3 of their stake. Agree with the comments below, N will drag down Q and will not deliver the growth that Q so desparately needs.

Another brilliant PJ Injustice coming to fruition.

If Qualcomm is smart, they would pay the $2 billion and never look back. NXP is not a company worth having, it will drag Q down.

The only winner in this is Trump, who gets to use this as a poker chip.

Nobody cares about the employees; when you work for publicly traded company like Q, you work for Wall St and their investors.

the way SM handles QDT matter totally scks. he doesn't give a sht about the employee and company.

SM will offer the newer server technology to china JV and shut down QDT to get MOFCOM off their back and apporove NXP deal. Watch what happens.

@ori they can wait until 25th of July ( https://www.qualcomm.com/news/releases/2018/04/19/qualcomm-and-nxp-agree-mofcom-request-withdraw-and-refile-application ). If the deal doesn't happen until then, Q has to pay 2B$ to N. We know the actions Q will take afterwards.

N must be stupid to step out because they must pay 1.2B$ to Q if there is an extraordinary reason to do so. N's quarterly revenue is about 2B$. It's almost impossible that N gets such an amount money greater than 1.2B$, money close to its quarterly revenue from anywhere else to give it up at the expense of 1.2B$ fee. Therefore N will wait until 25th of July.

Another sign that the deal might collapse is that N's stock is trading back to 110$ again. Investors seem to be losing trust and passion to for the deal.

Time is counting for Q

@faa, i dont know too much about M&As but how long will nxp wait this out?

For that matter, how long does qcom/SM wait this out?

Its not really a case of NXP ending the deal. The shareholders or the board can simply decline it to proceed. However, given the huge over-inflated price Q is offering, thats unlikely.

For example, say someone came along and offered $82/share for Q. Given its trading in the mid 50s; the choice would be obvious. Any board declining such a huge premium would be negligent in their duty to the stockholders. Any board declining such a huge payday for their shareholders would be very open to stockholder class actions concerning their dereliction of duty to shareholders interests. Right ?

When can NXP cancel the deal? Is that July 25?

At this point what does it really matter ??

i'm pretty sure China is still holding the deal because there is indeed no concrete decision about ZTE except a tweet