& cplSiteName &

Rumor: Is Broadcom Buying Agere?

Light Reading
News Analysis
Light Reading
10/4/2004
50%
50%

Agere Systems Inc. (NYSE: AGR.A) stock is getting a boost today from rumors that Broadcom Corp. (Nasdaq: BRCM) is considering an acquisition of the troubled chip firm.

A Broadcom acquisition seems to be a longshot bet, but it was enough to push Agere's stock up $0.18 (17 percent) to $1.26 by this afternoon.

Agere participates in a few markets that Broadcom doesn't, most notably chips for hard disk drives. And Agere could push Broadcom further into the telecom space with physical-layer chips, network processors, and switch fabrics. But Agere also overlaps Broadcom in two areas where Broadcom doesn't need much help: cell phone chips and wireless LANs.

Overall, analysts don't see much reason for Broadcom to absorb a company with a $2 billion market capitalization and a recent history of struggles. Agere is on the defensive, having disappointed in consecutive quarters due in part to a 3G handset rollout that just refuses to happen (see Agere Suffers Hutch Hiccup and Agere Stung by 3G (Again)).

A merger "would not make sense from the financial point of view, in terms of the impact it would have on Broadcom's valuation," says Dushyant Desai, an analyst with CE Unterberg Towbin. "It's better for Broadcom to compete with and maybe displace Agere."

Analysts were cheered recently by Agere's initiation of some cost-cutting efforts. Agere recently announced it would cut 500 jobs from its roster of 6,600. Another 600 will go if a buyer can't be found for Agere's Orlando fab, which the company pledges to close by the end of December 2005 (see Agere Wields Jobs Axe). Agere separately plans to close offices in Maine, New Jersey, and the Netherlands.

— Craig Matsumoto, Senior Editor, Light Reading




For more info on the state of industry financials, check out the coming Light Reading Live! event:



(6)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
cyber_techy
50%
50%
cyber_techy,
User Rank: Light Beer
12/5/2012 | 1:12:44 AM
re: Rumor: Is Broadcom Buying Agere?

<bold>
<italics>
Analysts were cheered recently by Agere's initiation of some cost-cutting efforts. Agere recently announced it would cut 500 jobs from its roster of 6,600.
</italics>
</bold>


How callous!! Hope they can be cheered just as easily when they lose their own jobs.

Welcome to capitalism
deauxfaux
50%
50%
deauxfaux,
User Rank: Light Beer
12/5/2012 | 1:12:44 AM
re: Rumor: Is Broadcom Buying Agere?
One of the two is a very smart guy, the other one should be washing the Ferraris in the parking lot. Heaven help the Broadcom guys if this is his idea.
big_daddy_cool
50%
50%
big_daddy_cool,
User Rank: Light Beer
12/5/2012 | 1:12:42 AM
re: Rumor: Is Broadcom Buying Agere?
So which was is the Ferrari owner and which one is the washer? FT or BR?
waverunner
50%
50%
waverunner,
User Rank: Light Beer
12/5/2012 | 1:12:41 AM
re: Rumor: Is Broadcom Buying Agere?
This is more than a rumour, insiders at Agere have been buying heavily for the last two months, expect a 2.50/share offering. A 2B offering for 1B+ sales per year company is quite reasonable.

W
deauxfaux
50%
50%
deauxfaux,
User Rank: Light Beer
12/5/2012 | 1:12:40 AM
re: Rumor: Is Broadcom Buying Agere?
I am sure that ultimately, he will do for Broadcom what he did with the Modem Biz
Big Time
50%
50%
Big Time,
User Rank: Light Beer
12/5/2012 | 1:12:39 AM
re: Rumor: Is Broadcom Buying Agere?
Not sure I see the math straight on this. With roughly 1.7B shares outstanding, doesn't that price a 2.50 offering at ~4.25B?
Educational Resources
sponsor supplied content
Educational Resources Archive
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, August 3, 1:00PM EDT
The Central Office Re-Architected as a Data Center
Guru Parulkar, Executive Director, Open Networking Research Center, Open Networking Lab
UPCOMING COURSE SCHEDULE
Wednesday, August 10, 1:00PM EDT
Telcos & Open Source 101
Phil Robb, Senior Technical Director, OpenDaylight
Friday, August 12, 1:00PM EDT
The Role of Open Source in NFV
Jim Fagan, Director, Cloud Practice, Telstra
Wednesday, August 17, 1:00PM EDT
Using Open Source for Data Centers and Cloud Services
Roz Roseboro, Senior Analyst, Heavy Reading
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (0) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Telecom Innovators Video Showcase
Versa Networks' Kumar Mehta on SD-WAN Managed Services

7|19|16   |     |   (0) comments


In Silicon Valley, Steve Saunders sits down with Versa's Kumar Mehta for an interview focused on why service providers are building SD-WAN managed services, and how Versa's telco customers are innovating.
LRTV Custom TV
Juniper Networks & The Evolution of NFV

7|19|16   |   06:01   |   (0) comments


Senior Juniper Networks executives talk to Light Reading Founder & CEO Steve Saunders about NFV developments and the recent independent evaluation by test lab EANTC of Juniper's Cloud CPE solution.
LRTV Interviews
CenturyLink Goes Beyond Managed WiFi

7|19|16   |     |   (0) comments


CenturyLink's managed WiFi allows enterprises, such as retailers and resorts, to track guest WiFi usage in order to help them better communicate with customers.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 6-8, 2016,
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Verizon Sports Big Plans for Yahoo
Alan Breznick, Cable/Video Practice Leader, Light Reading, 7/26/2016
Light Reading Beyond
Steve Saunders, CEO and founder, Light Reading, 7/28/2016
Are IP/Optical Integration Initiatives Moving to Silos?
Faisal Khan, Network Operator Technology Planning Dept., 7/28/2016
Yahoo Signing Off in $4.83B Sale to Verizon
Mari Silbey, Senior Editor, Cable/Video, 7/25/2016
Ericsson Board Has Been Asleep at the Wheel – Consultant
Ray Le Maistre, Editor-in-chief, 7/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
I've enjoyed interviewing many interesting people since I rejoined Light Reading, but William A. "Bill" Owens certainly takes the biscuit, as we say where I come from.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.