Why Broadcom Might Buy BroadLight

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paolo.franzoi 12/5/2012 | 4:46:20 PM

re: Why Broadcom Might Buy BroadLight

 

For Broadlight.  Seriously, where can they go as a standalone?

seven

 

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Mark Sebastyn 12/5/2012 | 4:46:18 PM

re: Why Broadcom Might Buy BroadLight

$230M+? Really?

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crescendo 12/5/2012 | 4:46:12 PM

re: Why Broadcom Might Buy BroadLight

With the two big OEMs in this field – Huawei and ALU – using their own OLT silicon, the OLT cannot be the motivation for such an acquisition. And on the ONT side – Broadcom has their own GPON chip for years, being deployed already by ALU and others. So why would they pay so much money for something that they already have? Anything wrong with the Broadcom GPON chip?

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t.bogataj 12/5/2012 | 4:46:11 PM

re: Why Broadcom Might Buy BroadLight

$230 to 340 million... Ten times the amount Adtran is spending on NSN BB.

It doesn't matter what you're worth -- but who is after you.

T.

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Mark Sebastyn 12/5/2012 | 4:46:01 PM

re: Why Broadcom Might Buy BroadLight

For a price to be that high there needs to be many buyers and in this case there are not. Everyone who wants to be in this business already has a GPON chip dance partner.

When companies like CoreOptics can only fetch $100M the idea that another GPON chip company can go for 3x that is hard to believe. If the price was that high I'd simply tell Broadlight to go find another buyer willing to pay that. I would venture there isn't another buyer until that price gets cut by a factor of 5.

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