Qualcomm Talks With NXP Said to Progress

The transcript discusses Qualcomm's interest in acquiring Dutch chipmaker NXP, highlighting the ongoing negotiations and the challenges in reaching a deal. The deal is significant due to the consolidation in the semiconductor industry and the convergence of mobile and automotive technologies. Qualcomm prefers a stock-based deal, while NXP wants more cash. The market implications of this potential acquisition are significant, especially in the context of mobile payments and smart automotive technologies. The competitive landscape is also explored, with Qualcomm having a strong position due to limited interest from other companies.

What is the main reason for Qualcomm's interest in acquiring NXP?

• To increase its cash reserves

• To enter the smartphone market

• To reduce its operating margins

• To expand into the automotive sector

How does NXP prefer the deal with Qualcomm to be structured?

• No preference

• Equal mix of cash and stock

• All cash

• All stock

What industries are converging as a result of the Qualcomm and NXP deal?

• Telecommunications and agriculture

• Finance and healthcare

• Semiconductors and pharmaceuticals

• Mobile phones and automotive

Which company did NXP acquire to increase its exposure in the automotive sector?

• Texas Instruments

• Qualcomm

• Freescale

• Intel

Why does Qualcomm have a strong negotiating position in the deal with NXP?

• NXP's business is more stable

• There are no other interested buyers

• Qualcomm has less cash available

• NXP has better margins