Qualcomm rejects hedge fund call for split

Qualcomm on Monday rejected a call from an activist investment firm to break up the US tech giant into groups focused on chip manufacturing and licensing of its technology.

The California group known for its big role in smartphone chips said it "welcomes input from our stockholders" including the proposal from Jana Partners made at an .

But Qualcomm said its board and management "periodically review our corporate structure" and have concluded that "synergies provided by our business model create more value for stockholders than could be created through alternative corporate structures."

According to a report in the Wall Street Journal, Jana had taken a $2 billion stake in Qualcomm as part of an effort to press the company to break itself up to boost shareholder value.

The report said Jana estimates that a split would "unlock value" for shareholders because Qualcomm earns the bulk of its profits from royalties from its patents and other technologies.

Explore further

Qualcomm buying CSR in $2.5 billion deal

© 2015 AFP

Citation: Qualcomm rejects hedge fund call for split (2015, April 13) retrieved 16 June 2019 from https://phys.org/news/2015-04-qualcomm-hedge-fund.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Feedback to editors

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more