InterDigital Inc (IDCC)

[Goodbuddy4863]

Intel Deal A Good Template For Chip Consolidation:

http://www.forbes.com/sites/dougyoung/2014/09/30/intel-deal-a-good-template-for-chip-consolidation/?partner=yahootix

"The potent combination of Spreadtrum, RDA and Intel could mark just the first step in the creation of a major new Chinese player, following Intel’s May tie-up with Rockchip, a China-based maker of chips used in the related tablet PC space. That deal didn’t see Intel take an equity stake in Rockchip, but the US giant could use its growing presence to help bring together all 3 companies.

Tsinghua should be commended for successfully privatizing the laggard RDA and Spreadtrum, and then bringing in Intel to sharply boost the new company’s value. Other government agencies should continue this drive by taking additional steps, such as providing tax incentives and merger financing, to promote consolidation necessary to build future global industry leaders."