Investors Pressure Qualcomm to Spin Off Chip and Patent Licensing Units

As a large investor in Qualcomm, the activist hedge fund Jana Partners is looking to persuade the company to sell or split its CDMA chipset business. With a $2 billion stake in the company, Jana Partners is one of Qualcomm’s largest shareholders. Jana Partners hopes that Qualcomm will commit to the strategic plan and looks to accelerate its recently announced $15 billion stock repurchase. This repurchase would raise the quarterly dividend to 48 cents per share from 42 cents. In addition, Jana Partners is asking Qualcomm to cut costs, accelerate stock buyback, and adjust the executive pay structure. Jana Partners believes that the buyback program will be a positive step and is insisting that Qualcomm capitalize on its dominant position in the chip market which is not given any value by the market. Jana Partners states that Qualcomm can better represent the value of its chipset business, Qualcomm CDMA Technologies, as well as its licensing business, Qualcomm Technology Licensing. To do so, Jana Partners is suggesting a separation of the divisions into two impendent publically trading companies, or by combining the two. If a split deems to be too risky or time consuming, Jana stated that Intel might be interested in buying Qualcomm’s chipset business, as Intel has yet to finalize the deal of purchasing Altera. Qualcomm Incorporated is a semiconductor company that designs and markets wireless telecommunications products and services.

Headquartered in San Diego, California, the company was established in 1985 and has become one of the largest players in its industry. In addition to its presence in the United States, Qualcomm also maintains presences globally. With 157 locations worldwide, the company employs over 26,000 people and has met yearly revenues of over $24 billion. Since its founding, Qualcomm has achieved over 30 acquisitions including HP Patents, Stonestreet One LLC, DesignArt Networks, and Sylectus. Via our proprietary website Just IT Hardware, ASAP Semiconductor is a leading computer accessory distributor. Prospective customers can browse our inclusive inventory of hard-to-find obsolete and current Qualcomm parts at If you are interested in a part, please feel free to contact our knowledgeable sales staff at or 1-714-705-4780 for a quote.


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