>> Broadcom has agreed to buy software maker CA Technologies, in a deal worth almost $19 billion. It's the first major move by the chip making giant after US President Donald Trump blocked it from buying Qualcomm in March. That aggressive $107 billion bid for its rival set off alarms in the administration.
They argued it was a threat to US national security. But more importantly, they were concerned the deal would help competition in China, as Beijing races to develop the next generation of wireless networks. Since then, Broadcom has moved its headquarters from Singapore to California, formally making it much less of a risk in the eyes of the US government.
>> Their move back to the United States and to the United States is something very, very special and very important.>> But this new deal may be a snag in its expansion. The CA purchase is new territory for Broadcom, a leader in the semiconductor market and it took Wall Street by surprise.
Broadcom shares were down 7% in after-hours trading and investors and analysts were left scrambling for an explanation. The company's chips power smartphones, computers, and networking equipment, while CA specializes in software for so-called main frames, a business that's being replaced by cloud computing. The differences between the two could mean Broadcom will benefit from CA's revenue, rather than merging operations.