Published: Sat, July 14, 2018
Business | By Tara Barton

Broadcom's market value plunges $19 billion after CA bid

Broadcom's market value plunges $19 billion after CA bid

Broadcom made it official, announcing a $18.9 billion deal to buy USA business software company CA Inc.

Another firm headlined its reactionary investment note "What the Hock?", referring to Broadcom CEO Hock Tan.

If the all-cash deal closes, Broadcom's revenue mix will diversify with about 71 percent coming from chips and 28 percent coming from software.

Under Chief Executive Officer Hock Tan, Broadcom has transformed itself through a string of acquisitions into one of the world's largest chipmakers. A perception of senselessness led two brokerage houses to cut share price forecasts for both Broadcom and CA.

Below is a timeline of Avago's/Broadcom's major deals in the past six years.

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Broadcom offered $44.50 per share in a transaction valued at $18.9 billion, said the person, who asked not to be identified ahead of an announcement that will come later Wednesday.

Broadcom made an unsolicited $103 billion bid for Qualcomm Inc, setting the stage for a takeover battle that could reshape the industry at the heart of mobile phone hardware.

"With its sizeable installed base of customers, CA is uniquely positioned across the growing and fragmented infrastructure software market, and its mainframe and enterprise software franchises will add to our portfolio of mission critical technology businesses". It has since completed that move, but USA officials refused to budge. Under his leadership, Broadcom has acquired several firms with high integration value to the company under very tight negotiations.

Avago said it would buy Emulex Corp for $764 million, in a bid to extend Broadcom's presence in storage networks into fiber channel technology.

Avago Technologies Ltd said it will buy optical chip and component maker CyOptics Inc for about $400 million in cash.

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