Thread regarding Qualcomm Inc. layoffs

How Apple is behind the Broadcom takeover

So here is the storyline about how Apple is supposedly behind the Broadcom takeover attempt. I have pieced this together from various watercooler conversations and chats with people inside and outside of Q. By now, it sounds plausible enough to me to not be a crazy conspiracy theory.

The situation: Apple has a supplier (i.e. us) that they are not happy with for various reasons, the most important being the supplier‘s licensing model. So Apple looks into various options to change the relationship with that supplier or to get rid of that supplier altogether. One outcome of this was the strategy to second source the modem from Intel, but obviously that was not enough, given Q‘s technological advances.

The solution: Apple realized that they have another supplier (i.e. Broadcom) with whom they have a good relationship, who would be powerful enough to take over Q, who is known for an aggressive growth and acquisition strategy and who has also had some legal problems with Q before.

The win-win: To make the whole thing worthwhile for Broadcom, Apple promises them an exclusive supplier relationship for, say, five years. So after Broadcom takes over Q, Intel gets the boot and in return, Broadcom switches Apple over to a „friendlier“ licensing model. Being a guaranteed exclusive supplier not just for the modem but also for various other parts of the iDevices is basically Broadcom‘s life insurance. It allows them to take over Q even if it means they have to accumulate some debt in the process, because there is a safe source of revenue for several years. Otherwise, this would be a huge risk.

The strategy: Apple withholds license payments and drags Q into litigation that puts pressure on the stock price, making the company an easier target for the Broadcom takeover bid. Q obviously fights back, but when things look difficult for Broadcom, the news spreads that Mediatek might replace Q in Apple products. Of course, we all know that is not going to happen, but once again, it puts pressure on the stock price. This kind of thing will go on now until Broadcom finalizes the deal, getting Q at a true bargain price.

Some additional random ideas I got from several people:

Once layoffs start after the acquisition, Broadcom could bend over for Apple in eliminating some Q people who are not very popular with Apple. Apparently, there are at least two Q people who Apple explicitly requested to be removed from DRI roles, and Q refused. After an acquisition, they could be first to go. Seems far-fetched to me, but I think Broadcom would generally be more Apple-friendly, so who knows.

I heard a rumor from several sources that a couple of years ago, Apple broached the subject of Intel possibly acquiring Q in management meetings with Intel. The whole idea never got past the drawing board stage, because it became obvious quickly that this would be a regulatory nightmare. A Broadcom acquisition plan doesn‘t carry such huge regulatory risks, so it ended up being the more logical choice.

The one thing I am wondering now is whether it would actually be legal for Apple to work behind the scenes with Broadcom in such a way. Beyond that question, the story makes complete sense to me.

by
| 4432 views | | 14 replies (last January 4, 2018)
Post ID: @OP+R3NzJYY

14 replies (most recent on top)

I don’t believe in conspiracy theories. But I think I am being followed and watched by the illuminati who want to destroy QC.

by
|
Post ID: @1apz+R3NzJYY

@1yvl So you tell people not to wrap themselves in conspiracy theories and then you follow it up with the most idiotic conspiracy theory?

by
|
Post ID: @1dne+R3NzJYY

Before you wrap yourself in crazy conspiracy theories, look at who owns the company and their motivations. It would be people like Blackrock, FMR, Vanguard and such. They own huge chunks of both companies QC and BCM. Along with Jana they were pissed off at SM and they wanted to sell QCT to BCM in 2014. SM threw a fit and spun stories in survival mode. Now these institutions are sick of QC management, and want to increase shareholder value. QC has handed its balls to these investors and they will decide on March 6th. Some of these guys own Apple also, but Apple has little say in what these guys need to do.

http://www.nasdaq.com/symbol/qcom/institutional-holdings

http://www.nasdaq.com/symbol/avgo/institutional-holdings

Stop talking to stupid jobless engineers by the cooler, who have no clue about wall street.

by
|
Post ID: @1yvl+R3NzJYY

@hxf Apple doesn‘t do huge acquisitions like that. They are afraid of losing the „Apple culture“ (whatever that might be).

Heck, they could have bought the Infineon mobile business a few years ago, but what for? Getting this stuff from a supplier is a really comfortable situation for them. Mobile isn‘t their core business, so why get into it? I wouldn‘t be surprised if Apple had some roadmap where they try to design cellular technology out of their devices five years down the road. Might sound crazy now, but Apple is always hunting for the next big technological paradigm change. So why should they burden themselves with a company that works on a technology that might become less and less relevant in the future?

by
|
Post ID: @1qqn+R3NzJYY

If there are insiders who know something, they should speak to federal regulators about the collusion.

by
|
Post ID: @1ruq+R3NzJYY

News Flash!!!! It was obvious as soon as it was announced. Apple has been pulling the strings from the beginning.

by
|
Post ID: @qaf+R3NzJYY

Lol OP use your creativity and imagination in more productive stuff

by
|
Post ID: @oyv+R3NzJYY

No offence to OP but wasnt this all very obvious from the start and written about in the press (Apple's blessing for Broadcomm takeover of Q) .Seems to me a lot of people were either not reading the news or in complete denial and are just starting to finally wake up to whats going on.

There are still people at the Q that still think this is all just a "distraction" and that it is not a REAL possibility.

There are still people who believe that if the takeover happens , everyone is still a year or two away from being laid off.

That is simply NOT the case.Once March 6 th comes around and if Broadcomm secures control of the Board , the company is theirs to start immediately doing what they want to appease the regulators.

IT IS NOT going to be a year or two down the road.......

Good luck to all .It is a terribly worryisome situation and scary for all the employees.

by
|
Post ID: @rdu+R3NzJYY

why would apple get in bed with broadcomm when they could buy qualcomm. no regulatory hurdles and a minor blip in their cash stash

by
|
Post ID: @hxf+R3NzJYY

i have also had the feeling that there must be a connection, but i have not been able to turn it into a coherent story like op. all of this sounds completely possible to me. might even be fully legal.

by
|
Post ID: @rzm+R3NzJYY

AWESOME conspiracy theory bro!

by
|
Post ID: @aex+R3NzJYY

Completely agree with OP. But never thought a company like Apple would play such unethical tactics to improve their falling iPhone sales and revenue.

by
|
Post ID: @rky+R3NzJYY

OP, you've kind of outlined the obvious. Though ive never heard bout unpopular qexecs with apl or intc taking q rumors. Both make total sense. Thanks for sharing.

P.s. what happened to the Jana directors. Are they still on the board?

by
|
Post ID: @yho+R3NzJYY

but who killed JFK

by
|
Post ID: @agm+R3NzJYY

Post a reply

: