Paul Jacobs, ousted as Qualcomm’s chairman in 2018 because he was trying to take the chip maker private (pictured, centre), abandoned the plan and will instead focus on his start-up XCOM, which develops 5G wireless technology.
“As Qualcomm’s position changed, the conditions weren’t right to take it private…However, industry dynamics have created an opportunity for our new company XCOM to drive the development of advanced wireless technologies and we have exciting new ideas to bring to market,” The Wall Street Journal (WSJ) quoted him as saying.
In April 2018, sources had said Jacobs received commitments following discussions about the move with strategic investors, sovereign wealth funds and wealthy individuals, adding to the potential of striking a deal.
However, the new report by WSJ stated Jacobs was put off later in the year because Qualcomm’s valuation compared to its earnings made it less attractive.
In November 2018 an ongoing spat with Apple and a $2 billion termination charge from a failed bid to acquire NXP Semiconductors cut into Qualcomm’s fiscal Q4 earnings.
Meanwhile, in June 2018 Jacobs along with two other former Qualcomm executives, launched XCOM. WSJ reported it has 30 employees, with plans to add 20 more after closing a deal in March to buy M87, a start-up working to improve network performance by turning smartphones into small cell towers.
XCOM plans to generate revenue by charging operators to use its technology in their apps, thereby keeping infrastructure costs low and improving network capacity.Subscribe to our daily newsletter Back