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TI buys National Semiconductor for $6.5B

computerworld.com

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Re: TI buys National Semiconductor for $6.5B

#3
Very cool news.

However, I see something like this and I wonder: "wow, Facebook is valued at over 10 times this purchase price (which is already inflated by virtue of it being a purchasing price)." I don't know what to draw from that; intuitively I see less value in Facebook, but I certainly haven't done an in-depth analysis.

Re: TI buys National Semiconductor for $6.5B

#4
TI's press release page is here: http://www.ti.com/acquire The blog post is here: http://e2e.ti.com/blogs_/b/realworld/archive/2011/04/04/ti-t... (The first is basically the outline of the second...)

The statement, "TI, which makes low-power chips, said..." is a huge understatement. TI dabbles in every area of electronics. Their 30,000 analog parts are supplemented by >70,000 other parts, and that number only accounts for parts which are available from Digikey.

Re: TI buys National Semiconductor for $6.5B

#6
post #3

Very cool news. However, I see something like this and I wonder: "wow, Facebook is valued at over 10 times this purchase price (which is already inflated by virtue of it being a purchasing price)." I don't know what to draw from that; intuitively I see less value in Facebook, but I certainly haven't done an in-depth analysis.

Nat semi has a known value and track record. Facebook doesn't have a known value/track record. Same with all these doctoms that give away things for free. The second they start charging they put a cap on their value. With facebook you're paying for future potential.

That's the reasoning, whether you agree with it or not.

Re: TI buys National Semiconductor for $6.5B

#7

This is awesome for TI! It is pretty crazy that Facebook is valued over 10 times this but if we didn't have facebook we wouldn't have likes, pokes or farmville...... If we didn't have Semiconductors we might not have Facebook. Strange world indeed! "Like" it though.

If we didn't have Semiconductors we might not have Facebook.

And if we didn't have sand we wouldn't have semiconductors, but I still ain't buying up the Gobi Desert.

Re: TI buys National Semiconductor for $6.5B

#8
post #6
post #3

Very cool news. However, I see something like this and I wonder: "wow, Facebook is valued at over 10 times this purchase price (which is already inflated by virtue of it being a purchasing price)." I don't know what to draw from that; intuitively I see less value in Facebook, but I certainly haven't done an in-depth analysis.

Nat semi has a known value and track record. Facebook doesn't have a known value/track record. Same with all these doctoms that give away things for free. The second they start charging they put a cap on their value. With facebook you're paying for future potential. That's the reasoning, whether you agree with it or not.

I do understand that argument; that much is clear (and I was not!). However, I think one would have to be dishonest with oneself if one didn't think the valuation was overinflated.

Re: TI buys National Semiconductor for $6.5B

#10
post #8
post #6

Earlier quoted context omitted.

Nat semi has a known value and track record. Facebook doesn't have a known value/track record. Same with all these doctoms that give away things for free. The second they start charging they put a cap on their value. With facebook you're paying for future potential. That's the reasoning, whether you agree with it or not.

I do understand that argument; that much is clear (and I was not!). However, I think one would have to be dishonest with oneself if one didn't think the valuation was overinflated.

Agreed. But silicon valley seems to have its own reality distortion field around it.
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