Due to the deterioration of financial results Qualcomm is thinking about dividing the business
Qualcomm is considering splitting into two independent companies. Some shareholders insist on this. This reaction is associated with the company's results in the third quarter. The hedge fund of Jana Partners , which owns a stake in the company worth more than $ 2 billion, insists on radical measures to optimize Qualcomm's business: separation of the company, cost reduction, accelerated repurchase of its own shares and the introduction of Jana representatives on the board of directors.
Qualcomm CEO Steve Mollenkopf does not deny that the company's financial results are worrying. If a split decision is made, chip manufacturing will obviously be separated from the license business. Their value is estimated at $ 74 billion and $ 87 billion, respectively.
Qualcomm's market capitalization is about $ 104 billion, its annual revenue is $ 26 billion, and its annual profit is $ 8 billion. Two-thirds of the company's profits come from Qualcomm licensing fees. However, two-thirds of revenue comes from chip sales. Since the beginning of 2015, Qualcomm stock quotes fell by 14%. According to forecasts for the current quarter, earnings per share should be $ 0.85–1 (last year it was $ 1.44), revenue - $ 5.4–6.2 billion (last year - $ 6.8 billion).
Qualcomm thought about dividing the business 15 years ago. But it didn’t get to the point, since then the financial results of the company began to improve.
July 18, Megamind wrote that the eBay online auction completed the allocation of the payment systemPayPal to an independent company. PayPal and eBay show various financial results. If the revenue of the payment system is growing, then the online auction is not so good: the company sells some assets (for example, a corporate unit) and optimizes internal processes.
In early July, it became known that until November 1, Hewlett-Packard Corporation ( HP ) plans to split the business into two separate companies: Hewlett Packard Enterprise and HP. Last fiscal year, Hewlett Packard Enterprise earned $ 55 billion. The total value of its assets is estimated at $ 65 billion. Separation is a necessary measure. Corporate revenue has declined significantly over the past few years.
Qualcomm CEO Steve Mollenkopf does not deny that the company's financial results are worrying. If a split decision is made, chip manufacturing will obviously be separated from the license business. Their value is estimated at $ 74 billion and $ 87 billion, respectively.
Qualcomm's market capitalization is about $ 104 billion, its annual revenue is $ 26 billion, and its annual profit is $ 8 billion. Two-thirds of the company's profits come from Qualcomm licensing fees. However, two-thirds of revenue comes from chip sales. Since the beginning of 2015, Qualcomm stock quotes fell by 14%. According to forecasts for the current quarter, earnings per share should be $ 0.85–1 (last year it was $ 1.44), revenue - $ 5.4–6.2 billion (last year - $ 6.8 billion).
Qualcomm thought about dividing the business 15 years ago. But it didn’t get to the point, since then the financial results of the company began to improve.
July 18, Megamind wrote that the eBay online auction completed the allocation of the payment systemPayPal to an independent company. PayPal and eBay show various financial results. If the revenue of the payment system is growing, then the online auction is not so good: the company sells some assets (for example, a corporate unit) and optimizes internal processes.
In early July, it became known that until November 1, Hewlett-Packard Corporation ( HP ) plans to split the business into two separate companies: Hewlett Packard Enterprise and HP. Last fiscal year, Hewlett Packard Enterprise earned $ 55 billion. The total value of its assets is estimated at $ 65 billion. Separation is a necessary measure. Corporate revenue has declined significantly over the past few years.