News
 

Bookmark and Share

(0) 

After STMicroelectronics decided to exit its joint-venture between itself and Ericsson, the management of the mobile system-on-chip developer hired JP Morgan Chase & Co. to investigate further financial options for the company, including potential sale. Since the JV has been losing money for a while, sale or merge is a likely option.

ST-Ericsson, headquartered in Geneva, Switzerland, is a 50/50 joint-venture of Ericsson and STMicroelectronics established on February 3, 2009. The company had revenue of around $1.7 billion in 2011, but has never been really profitable. Moreover, according to STM, ST-Ericsson has never attained a break-even point, which means that chances to make it profitable are fairly low in the current market conditions.

As a result of STM’s decision to exit the joint venture later this year, JP Morgan Chase & Co. has been hired to explore options including a sale of ST-Ericsson, reports the Wall Street Journal, citing sources familiar with the matter. An ST-Ericsson official said the chip designer is working with an external advisor “to ensure the best possible future for ST-Ericsson”, but did not elaborate. The process may not end in a sale, and it is unclear how much the companies are seeking for the joint venture.

ST-Ericsson develops highly-integrated system-on-chips and platforms for mobile devices, which include both multimedia and connectivity capabilities. ST-Ericsson’s NovaThor smartphone platforms support Google Android and Microsoft Windows Phone operating systems.

Considering rather substantial competition on the market of smartphone and mobile phone platforms these days and the fact that even Texas Instruments decided to refocus to embedded applications, it is unlikely that independent investors will be interested in ST-Ericsson. However, certain competing market players may be interested in patents, technologies and talents.

Tags: ST-Ericsson, STMicroelectronics, NovaThor, Texas Instruments

Discussion

Comments currently: 0

Add your Comment




Related news

Latest News

Thursday, November 6, 2014

6:48 am | LG’s Unique Ultra-Wide Curved 34” Display Finally Hits the Market. LG 34UC97 Available in the U.S. and the U.K.

Wednesday, October 8, 2014

8:52 pm | Lisa Su Appointed as New CEO of Advanced Micro Devices. Rory Read Steps Down, Lisa Su Becomes New CEO of AMD

Thursday, August 28, 2014

12:22 pm | AMD Has No Plans to Reconsider Recommended Prices of Radeon R9 Graphics Cards. AMD Will Not Lower Recommended Prices of Radeon R9 Graphics Solutions

Wednesday, August 27, 2014

9:09 pm | Samsung Begins to Produce 2.13GHz 64GB DDR4 Memory Modules. Samsung Uses TSV DRAMs for 64GB DDR4 RDIMMs

Tuesday, August 26, 2014

6:41 pm | AMD Quietly Reveals Third Iteration of GCN Architecture with Tonga GPU. AMD Unleashes Radeon R9 285 Graphics Cards, Tonga GPU, GCN 1.2 Architecture