As 24/7 Wall St. reported this morning, Broadcom’s (BRCM) efforts to get an injunction against Qualcomm (QCOM) marketing chips with BRCM intellectual property could have effect of shutting down parts of QCOM’s business.
Many on Wall St. may have believed that our viewpoint was extreme. But, late today, in federal court, Qualcomm founder Irwin Jacobs said the action had "the potential for significant harm" to his company, according to Reuters. Documents filed with the court indicated that the cost of the proposed injunction could be $2.4 billion in lost revenue for QCOM over the next five years.
Qualcomm had a bit less than $2.5 billion in net income last year.
As 24/7 mentioned, the stock, now trading at $35.90, fairly near its 52-week low of $34.10, could drop to under $30.
Douglas A. McIntyre can be reached at email@example.com. He does not own securities in companies that the writes about.