Putting all speculation to rest, on Thursday, Cadence (NASDAQ:CDNS) named Lip-Bu Tan as its new CEO. Tan has been on the board of Cadence for five years. Here are further details from EE Times and DeepChip.
With this appointment, Cadence selects a first-time CEO, albeit a very smart guy with a real track record in the venture business.
Good news: Tan understands venture capital and innovation and will most likely reactivate the M&A activity necessary to keep the product line moving. Mike Fister managed to choke this process with his Intel-bred NIH (Not Invented Here) syndrome. Tan may also reactivate Cadence’s own venture capital firm, also necessary to unclog the financing bottleneck in the EDA startup business. No mainstream VC funds EDA anymore, leaving entrepreneurs with few or no options.
Bad news: It's a bit of a rolling of the roulette wheel for Cadence with a first-time CEO, despite his ringside view from various boards.
I am also somewhat curious as to why a man of Tan’s profile, and at the stage of life he is in, would want to do this job now.
I will ask him the question if and when I get the chance.