Broadcom Aquired?

It is starting to look Broadcom will get bought out by its rival Avago as deep throats within both outfits think a deal is close.

Avago is in advanced buyout talks to acquire Broadcom, which manufacturers chips for both the smartphone and broadband industries. The two companies are more or less the same size, but at the moment Broadcom is the weaker partner

It has been the subject of previous speculation regarding acquisitions. The company is among the largest maker of chips for mobile systems such as smartphones, tablets and wearables, Internet of things (IoT) devices and automotive technology products.

Such capabilities could give Avago greater traction in fast-growing markets like IoT and mobile devices.

Broadcom announced last year that it was closing its baseband cellular chip business after being unable to gain inroads against such competitors as Qualcomm. The company had $8.4 billion in revenue last year.

It seems everyone wants a lot more consolidation in the chip industry. Intel reportedly resumed buyout talks to acquire Altera earlier this month, with the parties eyeing a potential price that could reach $13 billion. Micron was tipped as a potential buyer of rival SanDisk.

An April report cited a note from Bernstein analyst Mark Newman. According to this report, Newman pointed to SanDisk’s current valuation as making it a prime takeover target for rival NAND chip maker Micron, as well as other players in the market.

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