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posted by janrinok on Wednesday March 14 2018, @06:18AM   Printer-friendly
from the that'll-be-a-'no'-then dept.

Broadcom's quest to acquire Qualcomm has come to a screeching halt:

President Trump on Monday blocked Broadcom's $117 billion bid for the chip maker Qualcomm, citing national security concerns and sending a clear signal that he was willing to take extraordinary measures to punctuate his administration's increasingly protectionist stance. In a presidential order, Mr. Trump said there was "credible evidence" that led him to believe that if Singapore-based Broadcom were to acquire control of Qualcomm, which is based in San Diego, it "might take action that threatens to impair the national security of the United States."

[...] The move follows one by the Committee on Foreign Investment in the United States, which typically works behind closed doors and reviews deals only after they are announced, earlier this month to stall Broadcom's bid because of national security concerns. [...] The president said his decision had been based on the review by the committee, which focused on how Broadcom's purchase of Qualcomm might affect next-generation high-speed mobile networks known as 5G. The panel said that the leadership of Qualcomm, which makes wireless chips and also licenses key wireless patents, was too important to put into hands of a company with links to China. The committee argued that economic leadership in 5G was also a national security interest.

The Committee on Foreign Investment in the United States has just put a lot of companies on notice.

Also at CNN and LA Times.

Previously: Broadcom's Hostile Takeover Attempt of Qualcomm Delayed by U.S. Government Panel
Broadcom Pleads its Qualcomm Case to Congress

Related: President Trump Blocks Acquisition of Lattice Semiconductor
U.S. Lawmakers Urge AT&T to Cut Ties With Huawei
U.S. Government Reportedly Wants to Build a 5G Network to Thwart Chinese Spying
U.S. Rejects Chinese Takeover of the Chicago Stock Exchange


Original Submission

Related Stories

President Trump Blocks Acquisition of Lattice Semiconductor 18 comments

President Trump has blocked Canyon Bridge Capital Partners LLC from acquiring Lattice Semiconductor Corporation, using the authority granted by the Exon–Florio Amendment. Lattice Semiconductor makes programmable logic devices including field programmable gate arrays (FPGAs):

President Trump on Wednesday blocked a China-backed investor from buying an American semiconductor maker over national security concerns, a rare move that could signal more aggressive scrutiny of China's deal-making ambitions. The deal for Lattice Semiconductor has provided a test of the president's economic and diplomatic relationship with China.

[...] The White House said on Wednesday that it prevented the acquisition of Lattice Semiconductor, in part because the United States government relies on the company's products. The integrity of the semiconductor industry, it said, was vital.

The White House also raised concerns over the buyer's close ties to Beijing. The investment group included China Venture Capital Fund Corporation, which is owned by state-backed entities, the White House said.

The decision could foretell trouble for other Chinese deals under review by the Committee on Foreign Investment in the United States, a multiagency group that examines takeovers of American companies by foreign buyers and makes recommendations to the president. The group, which operates largely in secrecy, is also looking at the proposed purchase of MoneyGram International by Ant Financial, an affiliate of the Chinese technology giant Alibaba Group.

Also at Bloomberg and BBC.


Original Submission

U.S. Lawmakers Urge AT&T to Cut Ties With Huawei 17 comments

Exclusive: U.S. lawmakers urge AT&T to cut commercial ties with Huawei - sources

U.S. lawmakers are urging AT&T Inc, the No. 2 wireless carrier, to cut commercial ties to Chinese phone maker Huawei Technologies Co Ltd and oppose plans by telecom operator China Mobile Ltd to enter the U.S. market because of national security concerns, two congressional aides said.

[...] Earlier this month, AT&T was forced to scrap a plan to offer its customers Huawei handsets after some members of Congress lobbied against the idea with federal regulators, sources told Reuters.

The U.S. government has also blocked a string of Chinese acquisitions over national security concerns, including Ant Financial's proposed purchase of U.S. money transfer company MoneyGram International Inc.

The lawmakers are also advising U.S. firms that if they have ties to Huawei or China Mobile, it could hamper their ability to do business with the U.S. government, one aide said, requesting anonymity because they were not authorized to speak publicly.

Related: NSA Spied on Chinese Government and Huawei
Kaspersky Willing to Hand Source Code Over to U.S. Government
Kaspersky Lab has been Working With Russian Intelligence
FBI Reportedly Advising Companies to Ditch Kaspersky Apps
Federal Government, Concerned About Cyberespionage, Bans Use of Kaspersky Labs Products


Original Submission

U.S. Government Reportedly Wants to Build a 5G Network to Thwart Chinese Spying 23 comments

Trump security team sees building U.S. 5G network as option

President Donald Trump's national security team is looking at options to counter the threat of China spying on U.S. phone calls that include the government building a super-fast 5G wireless network, a senior administration official said on Sunday. The official, confirming the gist of a report from Axios.com, said the option was being debated at a low level in the administration and was six to eight months away from being considered by the president himself.

The 5G network concept is aimed at addressing what officials see as China's threat to U.S. cyber security and economic security. [...] "We want to build a network so the Chinese can't listen to your calls," the senior official told Reuters. "We have to have a secure network that doesn't allow bad actors to get in. We also have to ensure the Chinese don't take over the market and put every non-5G network out of business."

[...] Major wireless carriers have spent billions of dollars buying spectrum to launch 5G networks, and it is unclear if the U.S. government would have enough spectrum to build its own 5G network. [...] Another option includes having a 5G network built by a consortium of wireless carriers, the U.S. official said. "We want to build a secure 5G network and we have to work with industry to figure out the best way to do it," the official said, speaking on condition of anonymity. Axios published documents it said were from a presentation from a National Security Council official. If the government built the network, it would rent access to carriers, Axios said.

Will it include "responsible encryption"?

Also at Newsweek and Axios.

Related: U.S. Lawmakers Urge AT&T to Cut Ties With Huawei


Original Submission

U.S. Rejects Chinese Takeover of the Chicago Stock Exchange 13 comments

US rejects China-led bid for Chicago Stock Exchange

The US has rejected a proposed merger between the Chicago Stock Exchange and a Chinese-linked investor group. The decision comes after more than two years of reviews by officials.

The tie-up was initially approved by the Committee on Foreign Investment in the United States, pending further approval by the Securities and Exchange Commission (SEC). But US politicians, including President Trump, have said letting a Chinese firm invest in a US exchange was a bad idea.

Under the proposal, the Chinese-led North America Casin Holdings group would have bought CHX Holdings, which owns the Chicago Stock Exchange. The exchange, which handles just 0.5% of US stock trades, had said the deal would have provided the exchange with "vital capital". That funding would have been used "to boost numerous initiatives designed to benefit the city of Chicago, the US economy and market structure as a whole".

Also at Bloomberg, NYT, Reuters, and CNN.


Original Submission

Broadcom's Hostile Takeover Attempt of Qualcomm Delayed by U.S. Government Panel 5 comments

Qualcomm's board members, including several seats controlled by Broadcom, were set to vote on Broadcom's acquisition attempt on Tuesday. However, the annual shareholder meeting has been postponed for 30 days by the Committee on Foreign Investment in the United States:

Broadcom Ltd. is on course to win all six of the seats it's seeking on Qualcomm Inc.'s board, giving it a majority to push forward with its hostile takeover even as a U.S. government panel forced a delay of the final tally amid concerns about the deal's threats to national security.

Based on a count of more than half of the votes already cast, Broadcom would win a majority of Qualcomm's board seats, according to information obtained by Bloomberg. If that result holds up when the final vote takes place, Broadcom would have a mandate to overturn Qualcomm management's opposition to the $117 billion deal. Representatives for Broadcom and Qualcomm declined to comment.

The Committee is taking preemptive action this time:

The panel, the Committee on Foreign Investment in the United States, or Cfius, typically works behind closed doors and reviews deals only after they are announced. In the case of Qualcomm, the panel, which includes representatives from multiple government agencies, is looking at the acquisition before it is complete. In practice, reviews by Cfius often lead to the demise of deals.

[...] Already, Cfius has taken a more proactive role, blocking several major deals by Chinese buyers in recent months. Among them were proposed acquisitions of MoneyGram, a money transfer company, and Lattice Semiconductor.

Previously: President Trump Blocks Acquisition of Lattice Semiconductor
Broadcom Raises Bid for Qualcomm to $121 Billion


Original Submission

Broadcom Pleads its Qualcomm Case to Congress 9 comments

Broadcom has sent a letter to Congress:

Broadcom Limited said, in a letter to Members of Congress regarding its offer to acquire Qualcomm Inc., that it is committed to making the United States the global leader in 5G by focusing resources and strengthening leadership in this area. Any notion that a combined Broadcom-Qualcomm would slash funding or cede leadership in 5G is completely unfounded. In addition, Broadcom will not sell any critical national security assets to any foreign companies. Of course, any dispositions of assets to foreign buyers would be themselves subject to CFIUS review.

Broadcom is also pledging to create a new $1.5 billion fund with a focus on innovation to train and educate the next generation of RF engineers in the United States. This will ensure America's continued leadership in future wireless technology.

Broadcom also said it will work closely with the United States government as it drives to achieve and sustain this global leadership in 5G and beyond.

Broadcom also smeared Qualcomm's "anticompetitive licensing practices", and created an infographic "to set the record straight about Qualcomm's business relationships in China".

Also at WSJ and CNBC.

See also: The incredible multi-dimensional chess of Qualcomm vs. Broadcom

Previously: Broadcom's Hostile Takeover Attempt of Qualcomm Delayed by U.S. Government Panel


Original Submission

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  • (Score: 3, Insightful) by aristarchus on Wednesday March 14 2018, @06:33AM (2 children)

    by aristarchus (2645) on Wednesday March 14 2018, @06:33AM (#652181) Journal

    Seems like there was a very fine aristarchus submission on this not too long ago. Ah, yes.

    https://soylentnews.org/submit.pl?op=viewsub&subid=24842 [soylentnews.org]

    It seems that the conspiracy laden alt-right has met up with the conspiracy laden old (Ger: "alt") right to make tech and foreign policy for the United States of America, or what is left of it. Did you hear the one about Pizza Trails in the Sky that control sheeple's minds?

    • (Score: 3, Informative) by HiThere on Wednesday March 14 2018, @11:19PM (1 child)

      by HiThere (866) Subscriber Badge on Wednesday March 14 2018, @11:19PM (#652671) Journal

      Pizza trails exert a lot of control over my mind. Especially the ones with garlic and olives.

      --
      Javascript is what you use to allow unknown third parties to run software you have no idea about on your computer.
      • (Score: 3, Funny) by aristarchus on Wednesday March 14 2018, @11:25PM

        by aristarchus (2645) on Wednesday March 14 2018, @11:25PM (#652678) Journal

        Are you suggesting "It'll be pie, in the sky, by 'n' bye"? That's a lie! (Old Wobbly Tune)

  • (Score: 1, Insightful) by Anonymous Coward on Wednesday March 14 2018, @06:53AM

    by Anonymous Coward on Wednesday March 14 2018, @06:53AM (#652187)

    The only time conservatives seem to care about the problems oligopolies present is when it threatens national security. God, I hate the telecom oligopolies. The different ways they've fucked us over...

  • (Score: -1, Offtopic) by Anonymous Coward on Wednesday March 14 2018, @07:02AM

    by Anonymous Coward on Wednesday March 14 2018, @07:02AM (#652189)

    Stephen Hawking just died, you mutherfuckers.

    Why is this the next story?

  • (Score: -1, Spam) by Anonymous Coward on Wednesday March 14 2018, @07:23AM

    by Anonymous Coward on Wednesday March 14 2018, @07:23AM (#652195)

    Stephen Hawking just died, you mutherfuckers.

    Why is this the next story?

  • (Score: -1, Spam) by Anonymous Coward on Wednesday March 14 2018, @07:49AM

    by Anonymous Coward on Wednesday March 14 2018, @07:49AM (#652208)

    Stephen Hawking just died, you mutherfuckers.

    Why is this the next story?

  • (Score: -1, Spam) by Anonymous Coward on Wednesday March 14 2018, @07:57AM

    by Anonymous Coward on Wednesday March 14 2018, @07:57AM (#652212)

    Stephen Hawking just died, you mutherfuckers.

    Why is this the next story?

  • (Score: -1, Spam) by Anonymous Coward on Wednesday March 14 2018, @08:04AM

    by Anonymous Coward on Wednesday March 14 2018, @08:04AM (#652217)

    Stephen Hawking just died, you mutherfuckers.

    Why is this the next story?

  • (Score: 0) by Anonymous Coward on Wednesday March 14 2018, @10:52AM

    by Anonymous Coward on Wednesday March 14 2018, @10:52AM (#652270)

    Well, I can still buy oil with them. But if I can't buy certain interesting American companies with them no matter how much I have, well then, perhaps the US dollar really isn't as valuable as it is said to be. Maybe I ought to start selling off some of them, and see if that doesn't start bringing down the price of the dollar to its proper, lower level.

  • (Score: 3, Interesting) by richtopia on Wednesday March 14 2018, @01:34PM

    by richtopia (3160) on Wednesday March 14 2018, @01:34PM (#652360) Homepage Journal

    The deal was blocked because a foreign company is attempting to buy a company deemed vital to security interests of the USA. Broadcom was already looking to redomicile stateside which may make the Defense Production Act of 1950 non-applicable.

    https://www.prnewswire.com/news-releases/broadcom-redomiciliation-now-expected-to-be-completed-by-april-3-2018-300612124.html [prnewswire.com]

  • (Score: 3, Interesting) by canopic jug on Wednesday March 14 2018, @03:58PM

    by canopic jug (3949) Subscriber Badge on Wednesday March 14 2018, @03:58PM (#652447) Journal

    According to Bloomberg, Qualcomm outspent Broadcom about 100 to 1 in lobbying [bloomberg.com]. About the lobbying,

    Qualcomm, which has been a top-100 lobbying spender in every quarter since the end of 2014, had 19 more lobbyists at the end of last year than the year before, including three former members of Congress, according to a Bloomberg Government analysis. Qualcomm also spent more than Apple Inc., Walmart Inc. and Philip Morris International Inc. last year.

    The 2017 numbers were $8.3 million from Qualcomm and $85,000 from Broadcom.

    --
    Money is not free speech. Elections should not be auctions.
  • (Score: 0) by Anonymous Coward on Wednesday March 14 2018, @04:40PM

    by Anonymous Coward on Wednesday March 14 2018, @04:40PM (#652481)

    it "might take action that threatens to impair the national security of the United States."

    so what then? swap out the US intel agency spyware with someone else's spyware? can't have people stealing your slaves i guess.

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