Episode 48: Qualcomm - Broadcom

This episode of the Acquired podcast analyzes Broadcom's rejected $103 billion (excluding debt) bid to acquire Qualcomm, focusing on the semiconductor industry's consolidation trends. The hosts discuss the historical context of both companies, highlighting Qualcomm's early success with CDMA technology and its current challenges in a saturated market. They explore the acquisition's structure, including Silver Lake's involvement and the potential regulatory hurdles. The hosts conclude that the acquisition, while a consolidation play driven by economies of scale, is a "B" grade deal, not transformative but potentially beneficial for Broadcom if regulatory approval is granted. A key takeaway is the increasing vertical integration by companies like Apple, impacting the market for horizontal component providers.