Avago, Broadcom Combo Praised

Deal would create $13B mobile/cloud giant

Rick Merritt, EETimes
5/28/2015 00:30 AM EDT

SAN JOSE, Calif. – If Avago bids to buy Broadcom as reported it would be the largest of an escalating set of deals for the company and the consolidating semiconductor industry. The combination would have little product overlap, a few areas of synergy and would no doubt squeeze out plenty of savings in layoffs and spin-outs.

Ironically, Avago is the smaller of the two companies at about $4.3 billion in revenues in its last fiscal year, making it the 14th largest semiconductor company in the rankings of IC Insights. By comparison, Broadcom reported $8.4 billion in revenue in its last fiscal year and is ranked the ninth largest chip company.

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