Qualcomm Incorporated (QCOM) Message Board

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Technology Stocks : Qualcomm Incorporated (QCOM)

QCOM 177.78

-2.2%

Jan 9 9:30 AM EST

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To: marginmike who wrote (53680)	12/12/1999 6:48:00 PM
From: slacker711	Read Replies (3) of 152472

I've been trying to think of reasons why Nokia would NOT buy the handset division.... The engineers alone are probably worth a billion dollars....when you add in the manufacturing facilities and the current phone line-up it seems like a pretty easy deal to get done. The long-term ASIC deal would be tough for Nokia to swallow but it seems like it would be worth it to get out in front of the CDMA market. The issue that I think that Nokia would be having a tough time agreeing to is 3G royalties......I assume that this would be part of any deal that Qualcomm does for the division. I wonder if this could one of the reasons why the sale has taken so long.... Can you imagine how much Nokia would be paying out over the next 10 years if they agree to 3-5% royalties on the sale of every handset? If I was running Nokia and someone showed me that by agreeing to buy the division I would end up paying billions...Rationally I might know that this will happen anyway but it would be VERY hard to agree to..... From Qualcomm's perspective I think the deal is a no-brainer (unless there are some big non-traditional buyers out there egDELL/Compaq). Slacker

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