Chipmaker Broadcom Corp (Irvine, Calif., U.S.A.) plans to buy NetLogic Microsystems Inc (Santa Clara, Calif., U.S.A.) for about $3.7 billion to expand its lineup of chips used in wireless network equipment to take advantage of growing demand for mobile data services.
The $50-per-share deal, which represents a premium of 57% over NetLogic's Friday close of $31.91 on the Nasdaq, sent NetLogic's shares soaring 50% on Monday. But Broadcom shares were down 2.5% at $32.60 as some investors questioned the steep premium.
Verizon Communications (New York)
High-profile launches from players such as Amazon, Google and Apple are expected to galvanize the growing market for consumer cloud mobility services, generating revenues reaching almost $6.5 billion per annum by 2016, a new report from Juniper Research (Hampshire, England) has found.
AT&T Inc (Dallas, Texas, U.S.A.) and T-Mobile USA, who is owned by Deutsche Telekom AG (Bonn, Germany), fought back against the Justice Department's challenge to their proposed merger, arguing the deal would "usher in more intense competition."
AT&T and T-Mobile argued in a federal court filing on Friday that the massive $39 billion deal would free up spectrum and create new capacity for Americans whose mobile devices are transmitting increasingly large amounts of data.
Silicon Valley is home to some of the most powerful technology companies in the world. Microsoft, Google, Apple, Intel, Sony, IBM and Oracle all headquarter in and around the Silicon Valley, and many of those companies started and built their company there. With so many technology companies headquartered in the area, it makes sense that Vodafone (London, England) decided to launch a Research and Development (R&D) Center in that same location.
TIM Participacoes (Sao Paulo, Brazil), Brazil's second-largest wireless phone company, said on Tuesday its controlling shareholder Telecom Italia has no plans to sell part of its stake in the Brazilian company.
The statement from TIM Participacoes came in a securities filing responding to a report by newspaper Valor Economico that Telecom Italia (Rome, Italy) was preparing to sell some of its 67% stake in the local company, calling TIM Brazil, while retaining control.
Sprint Nextel (Overland Park, Kan., U.S.A) sued to stop AT&T Inc's (Dallas, Texas, U.S.A.) $39 billion purchase of T-Mobile USA (Bonn, Germany), staking out its own private antitrust claims alongside the U.S. government's challenge to the deal.
Sprint may have filed its own case in the event that the Justice Department comes to a settlement with AT&T, said Eleanor Fox, a professor at New York University School of Law.
"It may want to have its action out there just in case," she said.
France's highest administrative court rejected a bid by telecom operator Iliad (Paris, France) to block the government's auction of fourth-generation mobile licenses. Broadband provider Iliad had petitioned France's Conseil d'Etat for an emergency injunction to suspend the auction, set to begin on September 15, saying it was not fair to all telecom operators.
Below is a list of new products announced this week in the telecom industry.
Ceragon: compact, all-outdoor packet for 4G/LTE backhaul
Ceragon Networks Ltd. (Paramus, N.J., U.S.A.), a wireless backhaul vendor, announced the release of a compact, all-outdoor, high-capacity wireless packet for 4G/LTE backhaul.
On Monday, Kenya announced that it invites investors interested in partnering with the country to build a fourth-generation Long Term Evolution (LTE) services network, as it plans to ramp up investment in the country's telecoms industry.