Qualcomm announced that its board and management have unanimously concluded that the company is best to remain as a single entity to maintain its technology leadership and product strength. The chip maker undertook a month long study to evaluate whether the company should split into two separate companies, with one focused on making research advances and selling intellectual property, and the other on making chips.
According to Qualcomm, the current structure creates unique strategic benefits for each business, driving enhanced overall financial performance of the Company and providing the best opportunities for the Company to build on its roadmap, extend its technology into new categories and sectors and innovate in new technology areas.
Qualcomm’s Split Decision: Now Comes the Hard Part -- Heard on the Street https://t.co/6Mo1G5AyAw via @WSJ pic.twitter.com/0FwRKHi7cX
— Dan Gallagher (@djtgallagher) December 15, 2015
Steve Mollenkopf, CEO of Qualcomm Incorporated
The strategic benefits of the current structure will best fuel Qualcomm’s growth as we move through the upcoming technology transitions and extend our technologies into new user experiences, services and industries.
Paul Jacobs, Executive Chairman and Chairman of the Board of Qualcomm Incorporated
Over the years, as the landscape has evolved, we have periodically analyzed our business structure to test whether we are best positioned to drive stockholder value, and we have made fundamental changes to enhance value, when appropriate.
