Qualcomm resists break up

Paul Jacobs, QualcommAn attempt by hedge fund Jana Partners to force Qualcomm to split up the company has failed.

Jana wanted Qualcomm to split apart its semiconductor and tech licensing businesses but a report by the board said the current setup is a strategic part of its business.

It also said that earnings have improved in the current financial quarter as a result of sales of 3G and 4G devices – while cost savings it has made are also kicking in.

Jana had asked for the review in April which Qualcomm has just concluded. A committee was formed with two people nominated by Jana.

Qualcomm is currently being investigated by Chinese antitrust authorities – it has a large market share in mainland China.