Broadcom's stock is soaring on the news.

Mitch Wagner, Executive Editor, Light Reading

May 27, 2015

2 Min Read
Broadcom in Buyout Talks With Avago – Report

Broadcom is in "advanced talks" to be bought by Avago Technologies, according to a report by The Wall Street Journal.

Terms and a timetable are unclear, the Journal reported Wednesday. Broadcom Corp. (Nasdaq: BRCM)'s market value is $28 billion as of that afternoon, while Avago Technologies Pte. 's is about $34 billion.

Broadcom makes chips used in white box switches that are key to SDN, as well as processors used in about half the world's tablets and smartphones, including devices from Amazon.com Inc. (Nasdaq: AMZN), Apple Inc. (Nasdaq: AAPL) and DirecTV Group Inc. (NYSE: DTV). The company had $8.4 billion sales last year.

Want to know more about white box switches? They will be just one of the many topics covered at Light Reading's second Big Telecom Event on June 9-10 in Chicago. Get yourself registered today or get left behind!

Avago's chips are targeted at the wireless and enterprise storage markets. Its fiscal 2014 revenue was $4.269 billion.

Broadcom stock was up more than 21% Wednesday afternoon, trading at 56.98 at 3:11 p.m. EDT. Avago stock was also up, nearly 10%, to 143.85.

Avago bought Emulex in February for $606 million. (See Avago Eyes Enterprise Storage With Emulex Buy.)

More on Broadcom and Avago:

— Mitch Wagner, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profileFollow me on Facebook, West Coast Bureau Chief, Light Reading. Got a tip about SDN or NFV? Send it to [email protected].

About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

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