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Amazon (AMZN) is in negotiations to acquire TI's (TXN) cellular-chip operations in a deal that...

Amazon (AMZN) is in negotiations to acquire TI's (TXN) cellular-chip operations in a deal that would be worth billions of dollars, the Calcalist Israeli newspaper reports. TI, whose chips are used in Kindle devices and Barnes & Nobles' (BKS) Nooks, has already said it won't invest in supporting its customers' plans for smartphones and tablets to the same extent as previously.
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Comments (9)
  • Paulo Santos
    , contributor
    Comments (20404) | Send Message
     
    You can't make this stuff up. That's why I end up writing so much on AMZN. If this goes ahead it will be beautiful.
    15 Oct 2012, 07:10 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Amazon a wannabe conglomerate?
    15 Oct 2012, 09:57 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (20404) | Send Message
     
    AMZN is spreading itself so thin, and into such questionable ventures (if this goes ahead), that one might start questioning the sanity of it all.
    15 Oct 2012, 10:00 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Bezos on a potential must have it all shopping spree. This may make little sense, but then I thought the same when TXN decided to exit the business (against the overwhelming consensus that it was a good move).
    15 Oct 2012, 10:19 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (20404) | Send Message
     
    Here's a far-fetched conspiracy theory. This hare-brained scheme of AMZN buying TI's unit was put out there to give cover to someone wanting to dump his AMZN before earnings. That way, if regulators came knocking afterwards he could point towards this and say "I sold because of that".

     

    Now, this is plain speculation, of course.
    15 Oct 2012, 10:22 AM Reply Like
  • divinecomedy
    , contributor
    Comments (466) | Send Message
     
    I am short AMZN, but this is ridiculous and therefore might just cause the stock to go to 1000 P/E :(.
    15 Oct 2012, 10:32 AM Reply Like
  • $CLU
    , contributor
    Comments (208) | Send Message
     
    Not that crazy when you consider that companies such as Google, Apple, and Microsoft are trying to remove the "middle man" in the supply chain of their products. They typically get started with market sourced components but when they find good profit, they don't want to share the solutions so they "dis-intermediate" the supply chain to grab more profits and shut out competitors from the market.
    Rinse, repeat. Happened before in the PC industry. Eventually companies become bloated / complacent / NIH driven from owning their entire manufacturing chain. They are then destroyed by a small competitor which pieces together a better solution with (you guessed it) market sourced components.
    15 Oct 2012, 11:10 AM Reply Like
  • Paulo Santos
    , contributor
    Comments (20404) | Send Message
     
    There's no reason to believe there's "good profit" in there, or TXN wouldn't be trying to unload it.

     

    It's completely hare-brained. I am totally rooting for it!
    15 Oct 2012, 11:18 AM Reply Like
  • AndrĂ© Fernon
    , contributor
    Comments (111) | Send Message
     
    Amazon is between a rock and a hard place here. TI is losing money in their wireless chip division. I don't see Amazon doing any better. In essence TI have been subsidizing the e-books indirectly and are probably tired of doing it. Amazon is now going to have to bear the real cost of making the chips or seek alternative and more expensive chips elsewhere. I can't wait to see where they get the cash for this one. A convertible bond offering is my best guess with some cash left over to pay for the Seattle headquarters!

     

    15 Oct 2012, 01:13 PM Reply Like
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