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

To: Houston_CPA who wrote (10959)	5/29/1998 12:48:00 AM
From: waitwatchwander	Respond to of 152472

Houston, It is Qualcomm's interest in these operations that is worth $200 to $300 million. I believe in most cases (except Mexico @ 50%) this interest is in the range of 10-20% of total equity. Therefore, the new operating company(s) could have well over $1.5 billion in startup equity. I still think the major purpose for the spin-off is not, per say, financial. The spin-off will provide a new and different focus and attract the necessary "gizzillionaire" partners. In the early days, growth was driven by new ideas and research. Growth over the last few years has been driven by the move to becoming a "strategic manufacturer". The skills to continue delivering in these areas will remain in Qualcomm. Correct me if I'm wrong, but wasn't Bell Atlantic's and Hutchitson (sp?) Telecom's success based on "consumer marketing", financing (includes wheeling dealing) and efficient network operation. To me, these are much different skills than those currently driving Qualcomm. The superbowl commercial and the Rostov-on-Don affair were telling signs that things needed to be a bit different down the road. Political, geographical and branding boulders will be the real challenges to the new operation. I am sure that the bride to be will get adequate endowments to consummate numerous bigamous relationships. I trust Gregg will provide you with a more succinct response. FWIW, nf