REGISTER | LOGIN
Breaking News
Comments
Newest First | Oldest First | Threaded View
Jimelectr
User Rank
Author
Re: Boldness of the thinking .. ?
Jimelectr   11/9/2017 1:32:32 AM
NO RATINGS
That's about it.  Bottom line is all that matters.  Darn shame, but that's the thinking.  Somewhere between this Asian-style hypercapitalism and Eurosocialism used to be American true capitalism.  Not anymore.  Sigh...

photonic
User Rank
Author
Re: Boldness of the thinking .. ?
photonic   11/8/2017 3:42:15 AM
NO RATINGS
Hock Tan is a PhD in LBO. His thesis advisor was Henry Kravis of KKR, one of the two Private Equity companies behind Avago. KKR invented the LBO.

rick merritt
User Rank
Author
Re: Boldness of the thinking .. ?
rick merritt   11/7/2017 8:48:05 PM
NO RATINGS
Hock Tan has become a master of the post-LBO with his slice and dice of LSI and Beroadcom and, if he gets a regulatory OK, Brocade. Qualcomm would take that game to a whole new level.

photonic
User Rank
Author
Boldness of the thinking .. ?
photonic   11/6/2017 10:57:33 PM
NO RATINGS
The thinking was invented in the 1980's and is called a "Leveraged Buyout" (LBO) or colloquially a "Corporate Raid". This thinking needs to be bold because it allows a finance company to make a profit by buying and then selling a company whose product it knows nothing about. It goes like this. You find a company that is making a return on investment that is less than would be possible if the company were run solely to maximize short term profits. You sell those parts of the company that do not add to profit. You offer the current owners a price they cannot refuse. In the 1980's Michael Milken created the market for high yield junk bonds and spurred the LBO boom. Today Private Equity companies have learned how to finance an LBO without using junk bonds. They buy Semi companies at favorable prices from poorly run and bloated companies (HP and Motorola) and quickly take them public in an IPO under a new company name (Avago and Freescale). They continue to borrow using the company as collateral.  Broadcom is not a semi company. It's a finance company.    

DMac
User Rank
Staff
Re: Antitrust
DMac   11/4/2017 2:35:00 PM
NO RATINGS
I'm with you. I don't see how this could possibly fly. But it's astounding to see the boldness of the thinking. Consolidation in this industry apparently knows no bounds... 

resistion
User Rank
Author
Antitrust
resistion   11/4/2017 4:06:47 AM
NO RATINGS
Obvious antitrust - B and Q were embroiled in suits already.



Like Us on Facebook
EE Life
Frankenstein's Fix, Teardowns, Sideshows, Design Contests, Reader Content & More
Martin Rowe

Test Tool Finds Ethernet Wiring Errors
Martin Rowe
Post a comment
When my house was renovated several years ago, I had the electrician install network outlets in numerous places, then run the LAN cables to a wiring closet. But he didn't document the ends ...

Martin Rowe

Local Electronics Store Supplies Engineers and Hobbyists
Martin Rowe
5 comments
Rochester, N.Y. — Tucked away in this western New York city known for its optics is Goldcrest Electronics, a local store that's supplied businesses and individuals with electronic ...

Martin Rowe

How to Transform a Technology University (Book Review)
Martin Rowe
1 Comment
The Presiding Genius of the Place by Alison Chisolm. WPI, Worcester, Mass., 234 pp., 2016. Engineers love to discuss, and often criticize, engineering education. They often claim ...

Max Maxfield

Aloha from EEWeb
Max Maxfield
Post a comment
Just a few minutes ago as I pen these words, I posted this blog about this month's Cartoon Punchline Competition over on EEWeb.com.