“Qualcomm Inc. is expected to conduct a sweeping strategic review that will look at the possibility of a breakup, among other options,”
the
Wall Street Journal
reported.
Qualcomm, a publicly traded company controlled by the Jacobs family, may also consider returning more cash to shareholders, the
Journal
article said.
Activist investor Jana Partners LLC, a New York hedge fund, disclosed in April that it had a stake of more than $2 billion in the company and has pressed for changes at the company, the report said.
Qualcomm might also “reshuffle its board and give Jana a say in adding independent directors,” the
Journal
reported.
If Qualcomm were to split, it would probably separate its chip production business from its patent licensing business, which collects royalties from the sale of smartphones that use its chip technology, the article said. “Qualcomm has seriously considered splitting into two for years,” the
Journal
report added. (Source:
Wall Street Journal
, July 20, 2015.)
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