Broadcom Seeks Buyer for RF Wireless-Chip Unit
December 18 2019 - 1:54PM
Dow Jones News
By Cara Lombardo and Dana Cimilluca
Broadcom Inc. is looking to sell one of its wireless-chip units,
a move that would accelerate the company's shift away from its
roots as a semiconductor maker.
Broadcom is working with Credit Suisse Group AG to find a buyer
for its radio-frequency, or RF, unit, a segment of its
wireless-chip business that makes filters used in cellphones to
clarify signals, according to people familiar with the matter.
The unit had $2.2 billion in revenue in Broadcom's 2019 fiscal
year and is one of the original businesses of predecessor company
Avago. It could be worth $10 billion, some of the people said, but
it isn't clear if that's achievable and there may not be a deal.
The process is at an early stage, the people said.
Broadcom obliquely referred to the move when it reported results
last week, saying it was reclassifying its wireless units as
outside its core semiconductor business.
On a conference call to discuss results, Broadcom Chief
Executive Hock Tan called the wireless businesses "stand-alone
franchises" that don't fully mesh with the company's other
operations.
Broadcom, historically known for semiconductors that go into
cellphones and networking equipment, in recent years has pushed
into the more lucrative software business through two big
acquisitions. It paid $18.9 billion for CA Technologies Inc. in
2018 and recently closed a deal to buy Symantec Corp.'s corporate
business for $10.7 billion. The push into software came after the
company was thwarted in an effort to buy Qualcomm Inc. for more
than $100 billion.
--Asa Fitch contributed to this article.
Write to Cara Lombardo at cara.lombardo@wsj.com and Dana
Cimilluca at dana.cimilluca@wsj.com
(END) Dow Jones Newswires
December 18, 2019 13:39 ET (18:39 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Broadcom (NASDAQ:AVGO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Broadcom (NASDAQ:AVGO)
Historical Stock Chart
From Apr 2023 to Apr 2024