Atheros was trading flat at about $37 per share Tuesday before the rumors hit the street after 3 p.m. EST. Atheros closed the day up $6.98 (19%) at $44 per share.
Why this matters
Qualcomm is a big deal in cell phones, of course, but the world seems to be getting more interested in tablet computers. Atheros's Wi-Fi and Bluetooth technologies would help Qualcomm secure some footing there; a merger would also give Qualcomm a stronger presence in laptop computers and netbooks.
Qualcomm might also be trying to go on the offense after seeing recent acquisitions by Broadcom Corp. (Nasdaq: BRCM) and Intel Corp. (Nasdaq: INTC).
Here's a glimpse of what Atheros and Qualcomm have been up to lately.
- AT&T Snaps Up Qualcomm's LTE Spectrum
- FLO TV Alive, But Not Well
- Qualcomm Updates on India Exit Plan
- Broadcom vs. Qualcomm Goes Femto
- Atheros Unveils Hybrid Home Network Chips
- Qualcomm Gets Social With iSkoot Buy
- Broadcom to Buy a 4G Strategy Via Beceem
- Qualcomm vs. Verizon
- Intel Looks to Infineon for the Full SOC
- Atheros to Acquire Opulan