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Merger Pits Mysterious Tsinghua Unigroup vs. MediaTek

11/14/2013 10:15 AM EST
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rick merritt
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A big move
rick merritt   11/14/2013 10:59:33 AM
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This is just the start of a consolidation that has been needed for some time.

In the U.S. our private equity, Wall Street and hungry execs drive this sort of thing to create Broadcoms and Qualcomms. It will be a Harvard Busienss review case study some day to see how well or poorly China's less capitalistic machinery performs on this task.

junko.yoshida
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Re: A big move
junko.yoshida   11/14/2013 11:49:48 AM
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Indeed. I have a feeling more shoes to drop, though.  

Sheetal.Pandey
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Re: A big move
Sheetal.Pandey   11/14/2013 1:02:51 PM
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With so much happening in smartphone market looks like this bubble has reached its heights...but its going to stay for some more years to come before a new technology gets in.

TonyTib
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Re: A big move
TonyTib   11/14/2013 2:13:13 PM
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As far as Qualcomm goes, I don't recall them making any big acquisitions.


I'd say big acquistions are busts (for the companies) at least half the time.  Wall Street loves them because they pocket big fees whatever happens.

krisi
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Re: A big move
krisi   11/14/2013 2:51:41 PM
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True, many aqusitions fail...but sometimes they work...you get either some technology, or some good people, or both...and in the worst case the execs have something to do ;-)...so they can justify their high salaries!

tektonikshift
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good deal for Spreadtrum, but far from threat to MediaTek
tektonikshift   11/14/2013 3:52:44 PM
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The merger is good Spreadtrum but long ways before the merged company will threaten MediaTek. These boardroom deals have a way of not working out according to plan.  

The merger eliminate RDA competitor in low end ... but so what.  How does that help you compete with MediaTek?

If Spreadtrum wants to catch MediaTek, they need better high end technology .... not the low end where RDA is strong. 

btw - Qualcomm acquired Atheros, a not so small company.  

 

rick merritt
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Re: good deal for Spreadtrum, but far from threat to MediaTek
rick merritt   11/14/2013 7:41:41 PM
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@tektonik: It's not a "killer" combo of Spreadtrum and RDA as much as seeing the invisible hand of China's busienss community grope for a way to turn its thousand blossoms into a big bunch of flowers.

If they find a process, they will create a new track for building big companies other than the one used for Huawei and ATE of gaward them all the gov't contracts.

tektonikshift
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Re: good deal for Spreadtrum, but far from threat to MediaTek
tektonikshift   11/14/2013 8:26:53 PM
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Rick

Good point, thanks for clarification. 

Cellular chipsets are a Kings game. Small fry need not apply. 

-Tek

junko.yoshida
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New Spreadtrum vs MTK
junko.yoshida   11/15/2013 2:24:04 AM
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I think we need to take a look at this merger in China context. At a time when Taiwan's MTK is beating China fabless companies at their own game, it's understandable that China wants to see a stronger player than hundreds of small companies nibbling at the low end market.

rick merritt
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Re: New Spreadtrum vs MTK
rick merritt   11/15/2013 12:24:49 PM
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BTW, Isn't Taiwan doing a pretty good job getting its act together with the MediaTek/Mstar merger, too? It would be interesting to hear stories about any progress on that front and the outlook for further consolidation in Taiwan where there is also the trend to many small companies.

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