Cavium buys QLogic in $1.36 billion data center processor de

[Admin]

www.zdnet.com/article/cavium-buys-qlogic-in-1-36-billion-data-center-processor-deal/

CAVM is not stopping at ARM processors. Does AMCC need to be sold?

[christopher]

AMCC could very well be in the "works" of being sold (I do hope so)

a "sale" could also take years to play out!

Remember the recent CFO change


all unless AMCC has something NEW in the works (post X-Gene) for substantial income

[Admin]

It looks as if the CAVM eco-system is growing by leaps and bounds, while AMCC's is stagnating, or is that just me? Now CAVM's share price took a real hit because of the acquisition of the otherwise stagnant Qlogic, but that's only because it will depress growth and valuations in the near future. It's a good strategic move. AMCC does not have the ability to do something like that given the depth of its pockets.

[christopher]

I really have to believe that this company is up for sale.

Like I stated above: a new CFO has been hired. one with knowledge of a company being sold.

Also, the individual, owning a large number of shares, on the BOD, must be looking for his payday,very soon.

"AMCC does not have the ability to do something like that given the depth of its pockets" (meaning acquisitions)

another reason to be up for sale.

I also believe that a specific number is probably being looked at for such sale. (double digit + share price suits me)

[Admin]

Well, I have to believe that one of the reasons that CAVM shares plunged is that by adding to its product portfolio it made itself a more complete company, but it is also now a less attractive acquisition target. What if the acquiring company wants just the processors? What should they do with all the connectivity products? So, as a medium-term strategic goal, the acquisition of Qlogic was good for Cavium, but the acquisition made them so much less desirable as a takeover target.

I also have to agree with you Christopher. Long-term, itty-bitty AMCC is not bumping-off Intel (I'm not even sure if Cavium can do that), no matter what Gopi says. AMCC needs to sell to someone with deep pockets that can think strategically.

Hopefully, we get news of the ramp starting this August (in the form of accelerated projections for the second quarter). Otherwise, the ramp will be two years away, and always will be.

Where is the very silent Zepf in all this?

From just over one year ago:

www.thestreet.com/story/13188365/1/applied-micro-could-be-open-to-billion-dollar-sale-under-new-director.html