Updated Mar 13, 2018

End of Qualcomm-Broadcom deal raises more questions than it answers

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.

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Trump touts press briefing "ratings" as U.S. coronavirus case surge

Photo: Drew Angerer/Getty Images.

President Trump sent about a half-dozen tweets on Sunday touting the high television ratings that his coronavirus press briefings have received, selectively citing a New York Times article that compared them to "The Bachelor" and "Monday Night Football."

Why it matters: The president has been holding daily press briefings in the weeks since the coronavirus pandemic was declared, but news outlets have struggled with how to cover them live — as Trump has repeatedly been found to spread misinformation and contradict public health officials.

World coronavirus updates: Total cases surge to over 700,000

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

There are now than more than 700,000 confirmed cases of the coronavirus around the world, according to data from Johns Hopkins. The virus has now killed more than 32,000 people — with Italy alone reporting over 10,000 deaths.

The big picture: Governments around the world have stepped up public health and economic measures to stop the spread of the virus and soften the financial impact. In the U.S., now the site of the largest outbreak in the world, President Trump said Saturday he would issue a "strong" travel advisory for New York, New Jersey and parts of Connecticut.

Go deeperArrowUpdated 44 mins ago - Health

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 2 p.m. ET: 704,095 — Total deaths: 33,509 — Total recoveries: 148,824.
  2. U.S.: Leads the world in cases. Total confirmed cases as of 2 p.m. ET: 132,637 — Total deaths: 2,351 — Total recoveries: 2,612.
  3. Federal government latest: The first federal prisoner to die from coronavirus was reported from a correctional facility in Louisiana on Sunday.
  4. Public health updates: Fauci says 100,000 to 200,000 Americans could die from virus.
  5. State updates: Louisiana governor says state is on track to exceed ventilator capacity by end of this week — Cuomo says Trump's mandatory quarantine comments "really panicked" people
  6. World updates: Italy on Sunday reported 756 new deaths, bringing its total 10,779. Spain reported almost 840 dead, another new daily record that bring its total to over 6,500.
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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