The real shame is that idiots like the original poster think correcting grammar makes them look cool... a smart person that will go absolutely nowhere in life, because they just don't get it.
Something worth pointing out, If you exclude TSMC and the memory guys ( Samsung, Micron Hynix) this resulting entity will be the 3rd semi company in the world by revenue, after Intel and Qualcomm. Time for TI and some others to make big moves.
So to save those who are wondering from googling, Avago had Sandforce because it acquired LSI in 2013. I still haven't found how they ended up being based in Singapore though, since Avago was a spinoff from Agilent and then later acquired by US-based investment firms...
The Raspberry Pi is one of the brighter spots for Broadcom and it's paying for itself, which is a lot more than you can say for most products. Beyond the PR value, it's especially cost-effective since the technology is over four years old and there's no end in sight for the demand, especially now that they've recently upgraded to a quad-core CPU with a 30% faster clock speed in the SoC (only about one percent of the die area, the rest being the GPU).
I don't care where someone got their MBA or what "deals" they've made, you can't beat a product that customers use and actually _love_. There's a lot to be said for the Raspberry Pi community and the Raspberry Pi Foundation's focus on education - you can't buy that kind of loyalty and good will with any amount of marketing and advertising.
It will be a while before the Avago HQ even knows what the Raspberry Pi is, and since it relies on the VideoCore IV GPU, that alone would justify revving the GPU to a VC V version. That's what they need to make sure they don't kill off in their exit from the idiotic abortive attempt to compete head-to-head with Qualcomm in the smartphone processor space (a prime reason they had to find a suitor to begin with).
You're comparing apples and oranges. The two companies are about the same size; either could've eaten the other. Avago's market cap is $36.5bn, and has ~8500 employee's to Broadcom's 10500. Avago has $10.5bn in assets to Broadcom's 12bn. Net revenue for the last 3 years averaged ~$470m at avago vs $600m broadcom.
Avago's actual outlay for the transaction is the $17bn in cash they're offering; the $20bn of stock that's the other half of the offer will be new shares. Of the cash being offered, most will probably be financed via borrowing.
It was more of a merger with a cash sweetener to the existing shareholders than a fully fledged purchase. The Sweetener was borrowed and will be paid jointly by both companies over time. Apparently in business, you can borrow billions to buy a company and then add that debt to the company you just bought and they pay it off and that is OK. A number of American "investors" have done that with UK Football (soccer) clubs which spend the next few decades servicing the debt. It makes no sense to me which is why I don't have a super yacht and have to watch the Monaco Grand Prix on the TV rather from the dockside.
That capitalist magic. First they just printed 20 million new shares, which is justified by the fact that the overall company is now much bigger, so the overall value per share can remain the same. Second they got a credit from somewhere, either directly from a bank or by an earlier emission of shares. They can use the newly acquired company as a security for this credit, in the overall finance report of Avago it will look as if the debt-to-assets ratio was constant, because the new debt is covered by the new assets.
The fact that the debt-per-employee ratio has risen because the Broadcom employees now need to help paying the debt which was used to "buy them" shall not be discussed. Anybody predicting that this 37$b paycheck to the former Broadcom owners will at some point be covered by some government rescuing the now to-big-to-fail company must clearly be a naive socialist who you should never listen to
It is funny that the Broadcom logo looks like a stock chart of a huge bubble. We are between the A and the D on that chart right now. These valuations are beyond nuts, we're in a full-on mania right now.
Yep, Avago acquires companies where it sees serious cost cutting opportunities. In this particular case they predict around $750 million annual cost savings in the first 10 years...which simply means they will slowly lay off everybody and keep the IPs. Avago is an investment vehicle of some of the largest investment funds of US. Singapore's corporate income tax rate is based on negotiation to the authorities there between 0.5 and 2 %.
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franzeal - Thursday, May 28, 2015 - link
You misspelled corporation.nandnandnand - Thursday, May 28, 2015 - link
Even if they fix it the shame will always be in the URLRyan Smith - Thursday, May 28, 2015 - link
We here at the Ministry of Truth believe that no fact is above changing. Behold our ability to change even URLs themselves!(The URL slugs are somewhat arbitrary and can easily be fixed)
AndrewJacksonZA - Friday, May 29, 2015 - link
I see what you did there, and what year you did it in. :-)dsumanik - Monday, June 1, 2015 - link
The real shame is that idiots like the original poster think correcting grammar makes them look cool... a smart person that will go absolutely nowhere in life, because they just don't get it.ahtoh - Thursday, May 28, 2015 - link
I read cooperationBrandon Chester - Thursday, May 28, 2015 - link
I apologize. I was using my iPad for writing and only had HTML support. It can be difficult to proof read text in that form.ex_User - Friday, May 29, 2015 - link
iPad is no good for proofreading? Sir, you'll be hearing from Apple lawyers very soon. :Psilverblue - Friday, May 29, 2015 - link
You're typing it wrong.;)
jjj - Thursday, May 28, 2015 - link
Something worth pointing out, If you exclude TSMC and the memory guys ( Samsung, Micron Hynix) this resulting entity will be the 3rd semi company in the world by revenue, after Intel and Qualcomm.Time for TI and some others to make big moves.
Impulses - Thursday, May 28, 2015 - link
Well, Samsung doesn't *just* do memory... How far down the list is NV or AMD?iwod - Thursday, May 28, 2015 - link
Wow this is big. I have never heard of Avago until the acquisition of LSI.JatkarP - Friday, May 29, 2015 - link
Same here..From nowhere they came acquired LSI for $6.6B and now Broadcomm for $37B.5150Joker - Thursday, May 28, 2015 - link
Man AT is going downhill.Impulses - Thursday, May 28, 2015 - link
Man these comment sections are going downhill.twin - Thursday, May 28, 2015 - link
Man this thread indention is going downhillat80eighty - Thursday, May 28, 2015 - link
and you believe this to be true, because?xthetenth - Friday, May 29, 2015 - link
Terrible drive-by comments. Clearly.mr_tawan - Friday, May 29, 2015 - link
You're not forced to visit the site, nor read the news, are you ?ABR - Friday, May 29, 2015 - link
So to save those who are wondering from googling, Avago had Sandforce because it acquired LSI in 2013. I still haven't found how they ended up being based in Singapore though, since Avago was a spinoff from Agilent and then later acquired by US-based investment firms...icebox - Friday, May 29, 2015 - link
I'm curious what this means (if anything) for the Raspberry PI,,,Joe_Blow - Tuesday, June 2, 2015 - link
The Raspberry Pi is one of the brighter spots for Broadcom and it's paying for itself, which is a lot more than you can say for most products. Beyond the PR value, it's especially cost-effective since the technology is over four years old and there's no end in sight for the demand, especially now that they've recently upgraded to a quad-core CPU with a 30% faster clock speed in the SoC (only about one percent of the die area, the rest being the GPU).I don't care where someone got their MBA or what "deals" they've made, you can't beat a product that customers use and actually _love_. There's a lot to be said for the Raspberry Pi community and the Raspberry Pi Foundation's focus on education - you can't buy that kind of loyalty and good will with any amount of marketing and advertising.
It will be a while before the Avago HQ even knows what the Raspberry Pi is, and since it relies on the VideoCore IV GPU, that alone would justify revving the GPU to a VC V version. That's what they need to make sure they don't kill off in their exit from the idiotic abortive attempt to compete head-to-head with Qualcomm in the smartphone processor space (a prime reason they had to find a suitor to begin with).
ToTTenTranz - Friday, May 29, 2015 - link
How does a company with $10B of "total assets" and $430 yearly income get to purchase another company for $37B?DanNeely - Friday, May 29, 2015 - link
You're comparing apples and oranges. The two companies are about the same size; either could've eaten the other. Avago's market cap is $36.5bn, and has ~8500 employee's to Broadcom's 10500. Avago has $10.5bn in assets to Broadcom's 12bn. Net revenue for the last 3 years averaged ~$470m at avago vs $600m broadcom.Avago's actual outlay for the transaction is the $17bn in cash they're offering; the $20bn of stock that's the other half of the offer will be new shares. Of the cash being offered, most will probably be financed via borrowing.
lorribot - Friday, May 29, 2015 - link
It was more of a merger with a cash sweetener to the existing shareholders than a fully fledged purchase. The Sweetener was borrowed and will be paid jointly by both companies over time.Apparently in business, you can borrow billions to buy a company and then add that debt to the company you just bought and they pay it off and that is OK.
A number of American "investors" have done that with UK Football (soccer) clubs which spend the next few decades servicing the debt.
It makes no sense to me which is why I don't have a super yacht and have to watch the Monaco Grand Prix on the TV rather from the dockside.
ShieTar - Friday, May 29, 2015 - link
That capitalist magic. First they just printed 20 million new shares, which is justified by the fact that the overall company is now much bigger, so the overall value per share can remain the same.Second they got a credit from somewhere, either directly from a bank or by an earlier emission of shares. They can use the newly acquired company as a security for this credit, in the overall finance report of Avago it will look as if the debt-to-assets ratio was constant, because the new debt is covered by the new assets.
The fact that the debt-per-employee ratio has risen because the Broadcom employees now need to help paying the debt which was used to "buy them" shall not be discussed. Anybody predicting that this 37$b paycheck to the former Broadcom owners will at some point be covered by some government rescuing the now to-big-to-fail company must clearly be a naive socialist who you should never listen to
Shadowmaster625 - Friday, May 29, 2015 - link
It is funny that the Broadcom logo looks like a stock chart of a huge bubble. We are between the A and the D on that chart right now. These valuations are beyond nuts, we're in a full-on mania right now.zodiacfml - Friday, May 29, 2015 - link
Hmmm...... wireless. I guess they are anticipating it to get a lot bigger and Intel getting more serious in it.toyotabedzrock - Friday, May 29, 2015 - link
They should block this merger. Didn't broadcom buy atheros already?Primum - Friday, May 29, 2015 - link
Qualcomm bought Atheros.fluxtatic - Saturday, May 30, 2015 - link
'They' who, exactly?poopi - Friday, May 29, 2015 - link
OK now its time to layoff all US based employees and ship the jobs to Singapore. Like all their other acquisitions.Ananke - Monday, June 1, 2015 - link
Yep, Avago acquires companies where it sees serious cost cutting opportunities. In this particular case they predict around $750 million annual cost savings in the first 10 years...which simply means they will slowly lay off everybody and keep the IPs.Avago is an investment vehicle of some of the largest investment funds of US. Singapore's corporate income tax rate is based on negotiation to the authorities there between 0.5 and 2 %.