Buyout rumors talk about qcom buying cavm, but why not amcc?

[Admin]

blogs.barrons.com/techtraderdaily/2015/12/15/qualcomm-a-buy-of-xilinx-or-cavium-makes-sense-says-clsa/?mod=yahoobarrons&ru=yahoo

[christopher]

I bet the reason why AMCC was left out of the acquisition list was because the analyst making the recommendations for Cavium and Xilinx, Srini Pajjuri, does not cover AMCC. He does cover Cavium, Xilinx and Qualcomm,  all with a BUY rating.

Analyst Pajjuri has a horrible rating as an analyst.

www.tipranks.com/analysts/srini-pajjuri

phobos,

if you go back and pull up the link you provided above:

the author states in the first paragraph, "and he recommends in particular shares of Xilinx and Cavium"

 

("he" is being referred to as analyst Pajjuri)

so this is all just a recommendation by analyst Pajjuri, benefiting the companies that he represents with a BUY.

[Admin]

I figured as much. Thanks for the research Chris. The guy has a 40% success rate. You would be better off betting against him!

[Admin]

An older article:

"...if Qualcomm wants to challenge Intel, it should immediately acquire Cavium (NASDAQ:CAVM) or Applied Micro (NASDAQ:AMCC) for their fabric and networking assets."

seekingalpha.com/article/3696406-qualcomm-needs-to-change-its-business-model-to-survive

I think that THIS is the problem and why Gopi was asked if he would sell part of AMCC and replied "No." QCOM has its own server SoC, and would just want the networking assets of the acquired company, not the ARM processor assets. Gopi is holding out for a "package deal".

QCOM missed PMCS, BRCM, and CAVM and AMCC have their own processors that they feel can compete against that of QCOM.

The bottom line?

No sale. ...at least not to QCOM.