Denver, CO, 06/10/2014 (Stocksntrade) – Broadcom Corporation (NASDAQ:BRCM) had recently quit from its baseband market thus saving $700 million in a year to focus on its failing stock market. The global semiconductor giant has now acquired Ittiam Systems’ business unit that is based in Bangalore, India. This deal owes its conception to the failing Wi-Fi speeds that has let the company as a whole, down. Now with this acquisition the company has acquired its IP addresses for faster accessibility along with a fantastic team of 32 employees who are now a part of Broadcom. Ittiam Systems is a small start-up company with a work brigade of 250 employees and has licensed its IP for an estimated $500,000 as reported by Economic Times.
Ittiam Technologies Systems
This acquisition follows the same pattern of Qualcomm buying 2 IPs from Mango Technologies, India, in 2010. Ittiam has got its IP address embedded in millions of tablets, smart-phones, Wi-Fi chipset devices and video communication devices. This company was founded in the year 2001 by Mr.Srini Rajam who functioned as MD of Texas Instruments India before that.
Broadcom Market Presence
From the time this deal has been announced, combined with Broadcom’s renouncement of basebands, the company’s share price has gone up by 19.8% which is $6.24. Wall Street analysts at BMO Capital Markets have raised the target price from $27 to $41. This was followed by other consensus estimate analysts doing the same. The deal comes as a win-win contract for both companies as Broadcom Corporation (NASDAQ:BRCM) focuses more on business enhancement and Ittiam focuses on developing video communications software and devices.
JP Morgan To Overlook Relinquishment Of Baseband Market
The leading semiconductor provider for wired and wireless communications has engaged JP Morgan to handle the potential sale or any other strategic administrative move of the baseband business of Broadcom.
Legal Notice: This work is based on what we’ve learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It’s your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Don’t trade in these markets with money you can’t afford to lose. Investing in stock markets involves the risk of loss. Before investing you should consider carefully the risks involved, if you have any doubt as to suitability or the taxation implications, seek independent financial advice. StocksnTrade expressly forbids its writers from having a financial interest in their own securities or commodities recommendations to readers. Such recommendations may be traded, however, by other editors, StocksnTrade, its affiliated entities, employees, and agents, but only after waiting 24 hours after an internet broadcast.
(c) 2018 StocksnTrade. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of StocksnTrade. See site disclaimer for compensation.