U.S. Markets close in 12 mins

Jilted Broadcom Goes on the Rebound. Too Bad It’s CA.

Bloomberg
Jilted Broadcom Goes on the Rebound. Too Bad It’s CA.

Rebound relationships are never a good idea. Someone should tell that to Broadcom Inc. The computer-chip maker, fresh off being jilted in its attempted takeover of Qualcomm Inc., reached an agreement to buy CA Inc. To put it simply, this acquisition is illogical. CA operates in a completely different corner of the technology industry from Broadcom. Much of CA’s technology is musty, its revenue is just recovering from a years-long slump and the company is expensive for what it is. Broadcom pegged the deal price at $18.9 billion in cash. Other than that, it’s a great deal for Broadcom.  Source: Bloomberg The CA acquisition is a huge blow to Broadcom’s reputation as a serial and savvy corporate