Broadcom In Advanced Stages Of Talks To Be Bought By Rival Avago

Avago Technologies is apparently in advanced talks to acquire rival chipmaker Broadcom, creating an entity with a combined enterprise value of about $70 billion.

Broadcom-Logo

The deal could be announced as early as Thursday according to a WSJ report, and would mark the latest acquisition in the rapidly consolidating chip-making industry.

With the Internet of Things revolution just around the bend, more companies are investing in manufacturing chips for smart objects such as wearables and household devices.

Broadcom is the supplier of mobile communication chips to Apple and Samsung, and the company has the potential to strengthen Avago’s presence in a segment that already accounts for 40% of its business.Following the report, shares of both companies jumped, giving Broadcom a market capitalisation of more than $33bn and Avago nearly $36bn. Both combined, the resultant company would be a massive $70bn juggernaut.

Following the report, shares of both companies jumped, giving Broadcom a market capitalisation of more than $33bn and Avago nearly $36bn. Both combined, the resultant company would be a massive $70bn juggernaut.

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