Ina Fried Mar 13
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End of Qualcomm-Broadcom deal raises more questions than it answers

Broken smartphone
Illustration: Rebecca Zisser/Axios

Broadcom's deal to buy Qualcomm is dead, but its demise leaves both companies facing an uncertain future.

The bottom line: Qualcomm's management, already under pressure from both shareholders and antitrust regulators, now has to prove it really is worth more than Broadcom was willing to pay. As for Broadcom, it's now likely a question of eat or be eaten.

For Qualcomm: It's got plenty on its plate, including a pending tender offer to buy NXP Semiconductors as well as a bitter legal fight with Apple, all while trying to make sure its licensing and chip businesses don't miss a beat as the industry moves from one generation to another, going from 4G to 5G technology.

For Broadcom: It's already gotten quite large through acquisition, but may need even more heft to go it alone. Intel was reportedly at least somewhat interested in Broadcom when the Qualcomm deal was on the table. The question is whether Intel will remain interested if there aren't any prospects of a Qualcomm-Broadcom combination. And, even if it is, would regulators be OK with that combination.

And, importantly, does Broadcom go ahead with plans to move its official headquarters to the U.S., or does it reverse course?

China concerns: The deal may ease some concerns, but doesn't make Huawei less of a threat. It's still the case that, although Qualcomm is influential in 5G standards, no U.S. company makes the gear that power such networks. Huawei's main rivals are two European companies, Nokia and Ericsson, along with (to a lesser degree) China's ZTE and Korea's Samsung.

But, but but: For all the talk about how a Qualcomm-Broadcom deal could help China, antitrust authorities there might have blocked it due to widespread disapproval from Chinese phone makers, says wireless industry consultant Chetan Sharma.

Dave Lawler 7 hours ago
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What Trump and Putin did and didn't discuss

President Trump spoke with Vladimir Putin this afternoon, and congratulated him on winning re-election on Sunday. After the call, Press Secretary Sarah Sanders was asked whether Trump felt the election had been free and fair, and said it wasn’t up to the U.S. to “dictate" how Russia holds elections.

The bottom line: Trump is not alone in congratulating Putin — leaders in France, Germany and elsewhere have done so this week, as Barack Obama did in 2012. But past administrations certainly have seen it as America’s role to call balls and strikes when it comes to elections abroad, and weigh in when democratic institutions are being undermined. A departure from that approach would be welcomed not only by Putin, but other leaders of pseudo democracies around the world.

Haley Britzky 3 hours ago
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Another explosion rattles Austin, unrelated to prior package bombings

Police and FBI Agents investigate at the Sunset Valley FedEx store in Austin, Texas, which is linked to the package bomb.
Police and FBI Agents investigate at the Sunset Valley FedEx store in Austin, Texas, which is linked to the package bomb. Photo: Suzanne Cordeiro / AFP / Getty Images

Officials are responding to a sixth explosion in Austin, Texas, on Tuesday night, the Austin American-Statesman reports. The Austin Police Department said they don't believe it is connected to the previous explosions around the city.

The details: Per the Statesman, the explosion occurred at a Goodwill and one man is being treated for "potentially serious injuries." CBS News' David Begnaud reports that the incendiary device was a flare, "included in a bunch of donated items." Per KVUE in Austin, "the victim was an employee who was looking through donations."