Broadcom to Buy a 4G Strategy Via Beceem

Broadcom Corp. (Nasdaq: BRCM) said today that it plans to buy chip startup Beceem Communications Inc. for $315 million, a move that kick-starts the company's Long Term Evolution (LTE) strategy and gives it the ability to compete with Qualcomm Inc. (Nasdaq: QCOM) and others in the emerging market for "4G" chipsets. (See Broadcom to Acquire Beceem.)

Beceem started as a WiMax supplier but has branched into developing dual-mode offerings that can combine WiMax with next-generation technologies like LTE or time-division LTE (TD-LTE). In February, the company announced that it has an LTE and WiMax combo chip.

Beceem has scored some notable WiMax wins, most recently with its BCSM250 chip being found in the Clearwire LLC (Nasdaq: CLWR) Rover Puck personal hotspot. (See Beceem Racks Up WiMax Device Wins.)

Beceem had filed for a $100 million IPO in April on the strength of its WiMax and "4G" orders. This exit by acquisition will likely be noted with interest by other chip startups, such as Altair Semiconductor and Sequans Communications . (See Challengers Shake Up LTE Chips .)

The deal gives Broadcom a ready-made and much-needed entry into the LTE and WiMax markets. For a couple of years, the company had been silent on how it would compete with Qualcomm and others in the "4G" market. (See What Is Broadcom's LTE Strategy?)

Certainly, the LTE market is now more competitive than it appeared to be even six months ago. Qualcomm is sampling product, a number of startups and phone vendors are developing their own LTE modems, and Intel is getting in the game through its Infineon Technologies AG (NYSE/Frankfurt: IFX) buyout. (See Intel Looks to Infineon for the Full SOC.) — Dan Jones, Site Editor, Light Reading Mobile

Pete Baldwin 12/5/2012 | 4:21:20 PM
re: Broadcom to Buy a 4G Strategy Via Beceem

So, what are the reviews like on this one?  $316M versus an IPO -- did Beceem come out ahead here?

marlin_brando 12/5/2012 | 4:21:10 PM
re: Broadcom to Buy a 4G Strategy Via Beceem

Who benefitted how much ? 4G is just a joke within Beceem. They came fast to market and they tired fast. No more funding. Too much pressure to look for BIG fish.

What mandav, paulraj, Rajat and  sunny thinks ?. They are happy with there share.

What about employees/engineers ? Sunny - your american ascent still a fortune fetcher , is in't it ?



freetoair 12/5/2012 | 4:21:10 PM
re: Broadcom to Buy a 4G Strategy Via Beceem

of course they came out ahead.

$315M for what???

check back in 6-9 months and you will see the program is most likely canceled within Broadcom. it basically is a brokered deal to get investors out without a total loss...

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