US: Qualcomm hopes Samsung deal will help with antitrust issues

Chipmaker Qualcomm has struck a deal with Samsung that may quash its hefty antitrust case in South Korea and help ward off a hostile bid takeover from rival Broadcom. While the exact terms of the deal haven’t been disclosed, the new patent cross-licensing agreement stipulates that Samsung “will be withdrawing” its interventions in Qualcomm’s appeal against its US$854 million fine from the Korean Fair Trade Commission.

The two companies plan to work together on Qualcomm’s processors, facilitating a “transition to 5G.” Qualcomm has already agreed similar commitments from a number of Chinese smartphone makers, including Xiaomi, Oppo and Vivo.

The partnership will help to counteract the damaging effects of the numerous fines and legal battles the company has faced in recent times reported Nasdaq. The deal was announced as Qualcomm reported first-quarter revenue growth of just 1%, after it swung to a net loss of US$6 billion in the three months ending December 2017. It needs to start demonstrating strong growth again if it’s to avoid a hostile takeover bid from rival Broadcom which, if successful, would be the biggest takeover in tech history reported Nasdaq.

At time of writing, Qualcomm stock had risen 0.87% in after-hours trading.

Full Content: Nasdaq, Reuters & 9To5 Google

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