Industry sources have revealed that Broadcom approached Ralink Technology for preliminary acquisition talks in November 2010 with a final decision expected to be made in March or April 2011. Qualcomm's Atheros deal has pushed Broadcom to pursue its planned Ralink acquisition at a faster pace, according to the sources.
However, Ralink has denied the rumors.
The sources indicated that Broadcom is mulling plans to acquire Ralink through the purchase of the company's common stock at up to NT$125 (US$4.30) a share. The transaction is estimated at approximately NT$21 billion. The planned acquisition is aimed at strengthening Broadcom's leading position in the global Wi-Fi chip market, the sources claimed.
In response, Ralink said Broadcom is focused on higher-end applications and handsets while its products are mainly for entry-level and mid-range consumer electronics devices. Also, in terms of geography, Ralink targets China while Broadcom has its foothold in Europe, Ralink indicated. Cooperation between the two may diminish product benefits.
In addition, Ralink is making progress to expand its product mix for connected digital devices, said the company, adding that it finds no need to look for some form of integration with other companies.
Source.
I personally sure hope that this is not realizing, it would be a blow to many current systems out there for support.
However, Ralink has denied the rumors.
The sources indicated that Broadcom is mulling plans to acquire Ralink through the purchase of the company's common stock at up to NT$125 (US$4.30) a share. The transaction is estimated at approximately NT$21 billion. The planned acquisition is aimed at strengthening Broadcom's leading position in the global Wi-Fi chip market, the sources claimed.
In response, Ralink said Broadcom is focused on higher-end applications and handsets while its products are mainly for entry-level and mid-range consumer electronics devices. Also, in terms of geography, Ralink targets China while Broadcom has its foothold in Europe, Ralink indicated. Cooperation between the two may diminish product benefits.
In addition, Ralink is making progress to expand its product mix for connected digital devices, said the company, adding that it finds no need to look for some form of integration with other companies.
Source.
I personally sure hope that this is not realizing, it would be a blow to many current systems out there for support.
