Qualcomm stock has exploded over 13% higher, jumping to $65 per share and adding over $7 billion in market cap almost instantly, following a report from CNBC’s David Faber, since confirmed by the company, that the years-long, and often heated litigation between Qualcomm and Apple has been settled.
While QCOM stock soared, AAPL stock dipped modestly lower although it has since rebounded back in the green.
Bloomberg adds some other initial details:
- QUALCOMM AND APPLE AGREE TO DROP ALL LITIGATION
- QCOM, APPLE SETTLEMENT INCLS PAYMENT FROM APPLE TO QUALCOMM
The two companies had started proceedings in a trial in federal court in San Diego on Monday, which was expected to last until May.
As Faber adds, in November, Qualcomm CEO Steve Mollenkopf said that he believed that the two companies were on the “doorstep” to settling. Apple CEO Tim Cook contradicted him shortly after, saying that Apple hasn’t been in settlement discussions since the third calendar quarter of 2018.
The full press release is below:
Qualcomm and Apple® today announced an agreement to dismiss all litigation between the two companies worldwide. The settlement includes a payment from Apple to Qualcomm. The companies also have reached a six-year license agreement, effective as of April 1, 2019, including a two-year option to extend, and a multiyear chipset supply agreement.
Apple revolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to leaving the world better than we found it.
Qualcomm invents breakthrough technologies that transform how the world connects, computes and communicates. When we connected the phone to the Internet, the mobile revolution was born. Today, our inventions are the foundation for life-changing products, experiences, and industries. As we lead the world to 5G, we envision this next big change in cellular technology spurring a new era of intelligent, connected devices and enabling new opportunities in connected cars, remote delivery of health care services, and the IoT — including smart cities, smart homes, and wearables. Qualcomm Incorporated includes our licensing business, QTL, and the vast majority of our patent portfolio. Qualcomm Technologies, Inc., a subsidiary of Qualcomm Incorporated, operates, along with its subsidiaries, all of our engineering, research and development functions, and all of our products and services businesses, including, the QCT semiconductor business. For more information, visit Qualcomm’s website, OnQ blog, Twitter and Facebook pages.
The sharp spike in QCOM stock helped move the entire market higher, just as the S&P was once again threatening to dip in the red, pushed by tech names in general, and the semiconductor space in particular as the SOX, Semiconductor Index jumped 2.6% to a new record high.
via ZeroHedge News http://bit.ly/2UFBKbQ Tyler Durden