IRVINE, Calif. and NEW YORK, July 19, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Broadcom Corporation (Nasdaq: BRCM) and Verizon Wireless, an affiliate of Verizon Communications Inc. (NYSE: VZ), today announced a licensing agreement that permits the continued importation and sale by Verizon Wireless of mobile devices that are the subject of the current litigation between Broadcom and Qualcomm Incorporated (Nasdaq: QCOM) before the U.S. International Trade Commission.
The agreement allows Verizon Wireless, the largest wireless provider in the country by revenue, to sell new handsets and other wireless devices, ensuring the availability of the latest cell phone technology in handsets and personal digital assistants (PDAs) to consumers and businesses. Under the agreement, Verizon Wireless will make payments to Broadcom at a rate of $6.00 for each 1xEV-DO handset, PDA or data card sold after the effective date, subject to a maximum payment of $40 million per calendar quarter and a lifetime maximum payment of $200 million. The agreement provides Verizon a license to the six Broadcom patents currently being litigated between Broadcom and Qualcomm. Other terms and conditions of the agreement are confidential.
We learned in b-school that the market is efficient and news gets factored into the stock price in matter of minutes. The press release went out at 2:32pm. Here are the stock charts for BRCM and QCOM at 3:10pm with a 20 min delay.
BRCM
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1 comment:
Nice!
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