-
Old technology
-
Overhead like in house fabs
-
Revenue shrinking per latest earnings release
-
Has not integrated Freescale fully.
-
Major cultural differences
Q should pay the $2B breakup fee and walk away. NXP is not worth the premium.
6 replies (most recent on top)
The fabs will be closed/sold the day Q takes over NXP. Hasn‘t SM already pretty much admitted that would happen?
The simple answer to the OP : because Q has the cash and Q management dont care if they overpay. They just need the 'earnings' and the entry into auto since their own auto effort is slowly drowning
They try to get the current earning from NXP to our books! I would agree buying technologies companies in AI would be a much cost effective play ....
Use some of the cash to buy AI and ML startups.
Q should have diversified into SW long time back and created a separate BU.
BREW was not a bad idea, it was early for its time.
Why the merger? Money, money, money.....
Financial institution gets 2% fee for successful M&A. Top managements at both company get a lot of bonuses. They don't care the long term strategies. Get the money, then retire.....
It is either that or buybacks at this point. Which of the two options has any hope of driving more innovation? Might as well go for the technology.