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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Gregg Powers who wrote (10885)	5/27/1998 12:19:00 PM
From: bananawind	Read Replies (2) \| Respond to of 152472

Gregg, can you comment on the motivation for and valuation of the proposed spinoff? Based on the 9/30 10-K it looks like QCOM has invested about $100 million in "terrestrial wireless operating companies", including Chilesat($42M), Nextwave($20M), Ukraine($9), and assorted others($29). This excludes any cash contribution to the new entity and investments during the current fiscal year (Mexico, Brazil?, Australia?). Looks like a win, win to me - remove Q as a competitor in the eyes of potential infrastructure customers, reduce earnings drag of minority equity losses, and (presumeably) give the market a clearer shot at fairly valuing these operations. Is there something else here? I'm thinking that moving Harvey White over and retaining 20% may be a signal that the new entity is going to be more than just a passive collection of minority interests. The idea of having an operating company committed to cdmaOne aggressively pushing the platform into new areas around the globe is very appealing. Even more so with Harvey at the helm. Is this just wishful thinking? Thanks in advance. -JLF