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LSI/Avago Merger: A Union of Impeccable Lineage

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HaileyMcK
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HaileyMcK   2/23/2014 3:01:47 PM
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Most of the reports on this merger take a business perspective. Thanks, Tam, for taking a look at how it affects our industry. I saw this statemenr from Avago (printed in NYTimes):

"This highly complementary and compelling acquisition positions Avago as a leader in the enterprise storage market and expands our offerings and capabilities in wired infrastructure, particularly system-level expertise," Hock E. Tan, Avago's chief executive, said in a statement. "This combination will increase the company's scale and diversify our revenue and customer base."

If you look behind the business speak, it seems like the net result, hopefully, will be improved availablity of producdts in that system level chip space. It's a hopeful sign.

SP
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Re: synergy
SP   2/21/2014 2:02:59 PM
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Its better to get your company into acquisition if it has already performed well for few years and there are takers. Running a company long time has lots of operational challenges unless you want to keep doing same things again and again with equal passion and perfection.

HaileyMcK
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Re: synergy
HaileyMcK   2/21/2014 12:42:39 AM
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@FlyingScott, if you watch the headlines, there's all sorts of movement in terms of mergers and acquisitions. IBM selling off its chip business. Google purchasing Nest. Facebook investing in a messaging platform. And of course LSI/Avago. I suspect the technology company landscape will look much different a year from now than it does today.

Jacob
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Good Move
Jacob   2/19/2014 11:29:09 PM
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1 saves

"The combination would create a chip company with $5 billion in revenue and a broader portfolio of communications and networking chips. "The combined company will be strongly positioned to capitalize on the growing opportunities created by the rapid increases in data center IP and mobile data traffic,""

Tam, good step stone and beneficial in long run.  They can tap the business opportunities by offering a complete solution for data centre IP and data traffic; both are hottest & evergreen in industry.

Eldredge
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Re: synergy
Eldredge   2/18/2014 7:55:48 PM
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Actually, I think I do see the potential for synergy in this merger - the combination of high density secured data storage and he means to access that data with mobile technology.

FLYINGSCOT
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synergy
FLYINGSCOT   2/18/2014 10:41:47 AM
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Base station mobiles versus storage solutions.....I am not sure where the synergy lies at this moment.  howeevr I am not a semicon guru and I am sure there is a great opportunity for this merger.  I sure hope so.



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