RealTime IT News

Level One Buy Changes Chip Market

Intel's $2.2 billion stock offer for Level One (NASDAQ:LEVL) redraws the network chip market and validates our February dropping of Broadcom (NASDAQ:BRCM) from the '99 HotWatch list. At that time my instinct said competition was looming large.

After losing ground since February BRCM shares rally a little today after the news and the implications come out. Keep in mind that Broadcom still enjoys the dominant market share in set-tops and DSL, however.

So calling Intel the winner in networking chips is too premature by a long shot.

Intel should have acquired Broadcom and it would have had the industry leading position in both PC and network chips.

Will someone else take out BRCM now? I can't imagine IBM, Cisco or Motorola letting Intel own this space also. Broadcom looks like a target if these three firms have their druthers. If not then I think Broadcom must get very aggressive -- a huge battle is brewing.

Today's snapshot:

  05-Mar-99 point change % change
ISDEX 320.75 15.11 4.94%
NASDAQ 2,337.11 44.22 1.93%
DJIA 9,736.08 268.68 2.84%

  • Infospace.com (NASDAQ:INSP) launches InfospaceCanada.com to expand its operations into the Great White North. Company sees a 6-plus-million Web user market in Canada.

  • Notify (NASDAQ:NTFY) receives a $3 million investment from Inktomi co-founder David Brewer, who will also be named to Notify's board. Notify makes what it calls Next Generation Caller-ID products and Visual Got Mail, which allows people to check email without a computer being on.

  • Juno, the free-to-dial-up email service, receives $65 million from Intel, News Corp. and venture capital firms Prospect Street Ventures and Sycamore Ventures. The service was one of the first to offer free email and boasts 6.5 million users. It began in April 1996 by DE Shaw, the Wall Street wizard.