Qualcomm decides against breakup, says current structure best
- 9 years ago
Qualcomm Inc has decided not to split into separate chipmaking and technology licensing businesses, concluding a six-month strategic review instigated by hedge fund Jana Partners.
San Diego-based Qualcomm, the biggest maker of chips used in mobile phones, said on Tuesday its current structure offered unique strategic benefits that cannot be replicated.
Qualcomm, whose earnings have slumped by more than 40 percent in each of the last three quarters, said it had "a focused plan" in place that it believed would drive growth.
Chief Executive Steve Mollenkopf did not elaborate.
The company has also said all along that its existing structure allowed it to leverage relationships with Chinese customers, which are expanding quickly into other countries.
San Diego-based Qualcomm, the biggest maker of chips used in mobile phones, said on Tuesday its current structure offered unique strategic benefits that cannot be replicated.
Qualcomm, whose earnings have slumped by more than 40 percent in each of the last three quarters, said it had "a focused plan" in place that it believed would drive growth.
Chief Executive Steve Mollenkopf did not elaborate.
The company has also said all along that its existing structure allowed it to leverage relationships with Chinese customers, which are expanding quickly into other countries.