Broadcom’s $130 billion bid for Qualcomm could become the largest merger in tech history and it safe to say it is being spoken about by everyone all around the world. Given Qualcomm’s huge IP portfolio and patent litigation history, PatSnap (a leading provider of R&D analytics) has provided a competitive IP analysis of the two companies, as well as a simulation of what a merger between their Intellectual Property might look like.
Ray Chohan, SVP, Corporate Strategy from the firm had this to say on the bid and gives a short analysis of the analysed companies’ IP portfolios that Patsnap carried out earlier this week.
“Broadcom’s proposed bid for Qualcomm is certainly an exciting prospect. While it has been reported that Qualcomm will dismiss this bid, we’ve analysed the two companies’ Intellectual Property portfolios in order to see what the merger may look like.”
“Firstly, the comparative size difference between the two companies’ patent portfolios is substantial. Qualcomm has over 170,000 patents, estimated to be worth over US$29.2 billion, whilst Broadcom has just over 14,500 patents estimated to be worth around US$3.3 billion. Qualcomm, comparatively speaking, files patents at a much higher rate. Surprisingly, however, both companies have a very similar IP portfolio strategy focused on tech specialisation, meaning that a merger may make sense in terms of aligned goals.”
“Interestingly, despite Qualcomm’s penchant for high-profile IP litigation suits, both companies have a similar history of actively asserting their IP through the law. Qualcomm does, however, hold each of the top ten most asserted patents between the two companies.”
“While Qualcomm produces the most revenue between the two companies, Broadcom’s turnover in the past year has been over half of Qualcomm’s, generated with just a fraction of the intellectual property. Looking at the technology areas, Broadcom has its foot in the door of markets dominated by Qualcomm, including wireless communications and mobile and computing devices. With the potential acquisition of Qualcomm, Broadcom would become the heavyweight in this market next to players like ZTE, Huawei, LG and Samsung.”