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.
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:
- Broadcom Chips In on 4K Android Box
- Broadcom Unveils Ultra HD Chips With MoCA 2.0 IP Interface
- Broadcom Introduces GPS-enabled Device for Satellite Outdoor Units
- Avago Offers New 100G Transceiver Samples