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Avago to buy Broadcom for $37 billion

Is $37 billion justified for this acquisition? Although Avago's market value is higher, if you look at the last year's revenue, it's ~$4.9 billion compared to much higher revenue figure of Broadcom at $8.4 billion.

In any case, BRCM being the largest maker of Wi-Fi chips, the joint company of Avago and BRCM could be a serious threat to Qualcomm.
 
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