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Marvell Technology Group, Ltd. (MRVL)

  • Thu, Jan. 8, 2:38 PM
    • In the wake of a Chinese media report stating a local firm is weighing a bid for Marvell's (NASDAQ:MRVL) mobile chip unit, MKM argues a sale of the business to Intel would be "a solid win-win for both parties."
    • MKM asserts buying Marvell would allow Intel to "scale-up in its wireless and foundry businesses," and bolster its chances of succeeding in a very competitive mobile baseband market where Qualcomm/MediaTek still dominate.
    • Meanwhile, Marvell could still see earnings grow 10% in spite of the loss of wireless sales (30% of total revenue), thanks to a 40% drop in R&D and sales/marketing spend, and relatively low mobile gross margins (~45%). MKM also believes the deal could dull patent lawsuit fears and allow Marvell to negotiate a favorable foundry deal with Intel.
    • One potential roadblock: Intel's deals with Chinese baseband vendors/Marvell rivals Spreadtrum and RDA present a conflict of interest.
    • Shares +15% since the Chinese report surfaced on Tuesday. Today's gains are aided by a 3.1% rise for the Philadelphia Semi Index.
  • Tue, Jan. 6, 12:58 PM
    • After previously following the tech sector lower, Marvell (MRVL +3.5%) has popped on a Chinese media report China Electronics is weighing a bid for Marvell's mobile chip ops.
    • Marvell's mobile baseband chip unit depends heavily on sales of 3G and 4G phones used on China Mobile's network. The business is believed to have much lower margins than those of Marvell's hard drive/SSD controller and Ethernet IC ops.
    • Chipmakers not named Qualcomm, MediaTek, or Spreadtrum have struggled to profit from the baseband market.  However, Marvell did state in November it expects strong FY16 (ends Jan. '16) growth for the business thanks to surging Chinese 4G phone sales.
  • Jan. 16, 2014, 10:34 AM
    • Two weeks after KKR disclosed a 6.8% stake in Marvell (MRVL -1.7%), Marvell insists it isn't talking with the P-E firm about a buyout or any other major transaction.
    • In November, Bloomberg reported KKR had discussed taking Marvell private in partnership with its founding family.
    • Marvell's comments come after U.S. district judge Nora Barry Fischer denied a Marvell request to cut a $1.17B Dec. '12 jury verdict in Carnegie Mellon's infringement suit by more than half.
    • Fischer rejected Marvell's assertion that Carnegie shouldn't receive damages for chip sales that occurred before its suit was filed because the university waited too long to do so. Marvell has begun phasing out the use of Carnegie's IP, but sales of infringing hard drive controller chips will continue this year.
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  • Nov. 5, 2013, 12:56 PM
    • Bloomberg has joined the Daily Telegraph in reporting KKR has acquired a ~5% stake in Marvell (MRVL +9.2%). The news service also reports KKR has discussed taking the chipmaker private in partnership with CEO Sehat Sutardja and his brother Pantas. Pantas is Marvell's CTO, and Sehat's wife, Weili Dai, is its president.
    • A Bloomberg source says an LBO is being considered, but adds no deal is imminent.
    • The Sutardja brothers own 20% of Marvell, and David Einhorn owns 9%.
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  • Nov. 5, 2013, 11:45 AM
    • The Daily Telegraph's Ben Harrington reports KKR has been quietly building a 5% stake in Marvell (MRVL +7.2%) ahead of a "potential takeover deal." He adds it isn't clear if formal talks have started.
    • David Einhorn still owns a large stake in Marvell, and there has been speculation Marvell's founding family could try to take the chipmaker private.
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  • Sep. 4, 2012, 6:36 PM
    Marvell's (MRVL) founding family - CEO Sehat Sutardja, CTO/brother Pantas, and VP/wife Weili Dai - could obtain a 35% annual return through 2016 if they took the company private at a 30% premium, thinks Nomura. While continuing to believe the chipmaker faces major challenges in the storage controller, TD-SCDMA baseband, and networking chip markets, the firm is upgrading shares to Neutral due to a low valuation (1x EV/sales) and the favorable economics of an LBO deal.
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  • Apr. 4, 2012, 4:24 PM
    PMC-Sierra (PMCS +8.5%) soared in late trading thanks to a report the telecom chipmaker recently held talks with potential buyers, though it's added a deal "is not considered imminent." PMC has been under pressure from activist firm Relational Investors to consider "strategic alternatives." Sources add rivals Broadcom (BRCM) and Marvell (MRVL) are "logical bidders" for PMC, though analysts think its exposure to legacy technologies such as SONET optical gear could be a problem.
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  • Jan. 4, 2012, 7:09 PM
    Marvell (MRVL +1.5%) has acquired Xelerated, a Swedish developer of network processing and Ethernet switching chips for a variety of telecom equipment. Xelerated, cited by Light Reading as a "key specialist" in the nascent market for processors handling 100-gig links, is a direct rival of EZchip (EZCH -1.4%), and also competes with top Marvell competitor Broadcom (BRCM -1.1%).
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  • Sep. 13, 2011, 1:37 PM
    NetLogic (NETL +0.2%) shares are quiet a day after Broadcom's (BRCM) $3.7B bid, as investor hopes for a higher competing bid fade. But Cavium (CAVM +3.2%) and EZChip (EZCH +6.5%) extend yesterday's speculative surge: JMP thinks CAVM could be a takeover target and the BRCM-NETL combo could add new business (also), and Bloomberg reports Marvell (MRVL) could make a bid for EZCH.
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  • Sep. 13, 2011, 9:38 AM
    Cavium (CAVM) shares rose sharply yesterday following BRCM's acquisition of rival NETL. However, Bloomberg estimates that if Cavium was acquired at a similar price/sales ratio, shares would rise an additional 39%. William Blair thinks INTC, MRVL, or QCOM could show interest in Cavium at a price of $50-$60/share.
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  • Sep. 12, 2011, 7:33 AM
    Broadcom (BRCM) agrees to buy NetLogic Microsystems (NETL) for $3.7B in a definitive merger agreement expected to close in the first half of 2012. The firm calls the deal a "strategic fit" that should deliver financial results. Rivals in the space potentially seeing interest: LSI, CAVM, MRVL, VTSS, FSL, PMCS, AMCC.
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  • Jul. 19, 2011, 11:34 AM
    Intel (INTC) is acquiring Fulcrum Microsystems, a maker of Ethernet switching chips for data center networking gear. The acquisition should help Intel better compete with Broadcom (BRCM) and Marvell (MRVL) in the switch processor market, and might also help the company benefit from Cisco's (CSCO) restructuring plans.
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Company Description
Marvell Technology Group Ltd is a fabless semiconductor provider of analog, mixed-signal, digital signal processing and embedded microprocessor integrated circuits.