Indian billionaire investor Rakesh Jhunjhunwala says he's very upbeat about his country's growth potential after the country underwent a massive banking crisis and the rollout...Asia Economyread more
There's more pain ahead for the U.S. and China amid their bilateral trade dispute, according to one expert.China Politicsread more
The U.S. government on Monday temporarily eased some trade restrictions imposed recently on China's Huawei, a move that sought to minimize disruption for the telecom company's...Technologyread more
You know there's an underlying problem when investment firms start to cut exposure to a particular asset class.Commentaryread more
Stocks in Asia mostly recovered in Tuesday afternoon trade as investors cheered a reprieve in U.S.-China trade tensions surrounding Chinese telecommunications giant Huawei.Asia Marketsread more
The issue of corporate debt has surfaced as companies continue to use the low rates the Fed has provided to lever up their balance sheets.The Fedread more
A record 257.4 million travelers are expected to opt for U.S. airlines for travel this summer, the 10th consecutive annual increase, a trade group forecast on Tuesday.Airlinesread more
Huya, a Chinese live streaming platform focused on gaming, is looking to expand into the U.S. in the next couple of years, CEO Rongjie Dong told CNBC. The U.S. is expected to...Technologyread more
Most U.S. hedge funds aren't expecting another big stock market sell-off as more firms curb bets on volatility, according to Nomura.Marketsread more
Mall owners are increasingly building out food halls with local chef-driven eateries, sushi bars and premium coffee shops.Retailread more
While Trump's lawyers had argued that the committee's subpoena did not have a legitimate legislative purpose — and was therefore invalid — Mehta took a broader view.Politicsread more
Paul Jacobs, who was ousted as Qualcomm's chairman in March, is talking to strategic investors and sovereign wealth funds to chip in for a fully financed bid to take Qualcomm private in the next two months, according to people familiar with the plan. He would run the company after it's gone private.
One of the potential investors is mobile chip designer ARM, which SoftBank bought in 2016 for more than $30 billion, these people said. ARM's technology forms the basis for most processors used in smartphones and tablets, including Qualcomm's processors.
ARM denied that it has talked to Jacobs about a possible acquisition involving Qualcomm. " "There have been no discussions between Arm and Paul Jacobs on any potential acquisition of Qualcomm," a spokesperson said.
Jacobs has hired two banks and lawyers to work on the deal, the people said. When the deal is completed, he is hoping for fewer than ten owners to be involved. Economic ownership might not align with control of the company. Jacobs, himself, owns less than 1 percent of Qualcomm.
Control will remain in the United States under Jacobs' plan, which he believes would allow the deal to avoid the kind of scrutiny that sank Broadcom's attempt to buy Qualcomm for around $120 billion. President Trump blocked that deal in March after the Committee on Foreign Investment in the United States expressed concerns over potential national security risks. Broadcom was based in Singapore, but has since re-domiciled to the United States.
Still, Jacobs has been working with CFIUS behind the scenes to address potential problems, which theoretically could arise if a large amount of the economic ownership comes from foreign sovereign wealth funds. The SoftBank-controlled Vision Fund includes a major investment from Saudi Arabia's main sovereign wealth fund.
A person familiar with his thinking says Jacobs does not believe Qualcomm should be carved up, but he believes he can only implement his plan for it as a private company, because that plan will require significant investment and things that public shareholders would not like.
Jacobs' father, Irwin, was a co-founder of Qualcomm, and Paul Jacobs rose through the ranks to become CEO from 2005 through 2014. Steve Mollenkopf has been CEO since then, while Jacobs served as chairman. The board removed him in March after Jacobs informed them of his desire to take the company private.
The company has been involved in a complicated high-stakes legal dispute with Apple, which licenses core wireless technology from Qualcomm. Apple claims that the company overcharges for licenses and has sued it for patent infringement, while Qualcomm has sought to have Apple phones banned from China, among other things. Jacobs plans to settle the dispute with Apple and rely on his strong relationship with Tim Cook, the people said.
Jacobs plans to maintain Qualcomm's license business, unlike Broadcom, which would have shut that piece down, the people said. Jacobs feels the licensing business is actually the strongest part of Qualcomm if operated correctly, the people said.