Texas Instruments' Acquisition of National Semi Boast Huge Premium

Tuesday, 5 Apr 2011 | 9:53 AM ET

The late day announcement Monday from Texas Instruments saying it’s buying National Semiconductor has tech investors focused on one thing: the huge premium that TI is paying.

The Faber Report: National Semi
One minute you have a $14 stock, the next minute you have one that Texas Instruments values at $25, says CNBC's David Faber. Also, Expedia settles with American Airlines over ticket sales.

Tech stocks have been a mixed bag of late, but when you have a buyer like TI willing to pay a 78 percent premium, it juices valuations across the board and makes people more confident about paying a higher multiple for that stock they weren’t sure was cheap.

Tech deals have been commanding high premiums, but this one is sure to resound for a while.

Follow David on Twitter:


Questions? Comments? Write to faberreport@cnbc.com.

  Price   Change %Change