Texas Instruments auctions defense unit; McDonnell Douglas shows interest in the business valued around $2 billion

Article Abstract:

Texas Instruments (TI) is selling its defense-electronics division to narrow the company's focus. The division manufactures missile sensors and seekers, advanced aircraft radar systems and night-vision systems. The division earned $1.74 billion in revenue for TI during 1995, about 14% of the company's overall business. Revenue is up 2% for the first nine months of 1996 and orders have increased 3%. The price for the division is expected to be in the $2.5 billion range. TI's terms for bidding require the sale to be structured as a Morris Trust transaction, which will enable the company to eliminate much of its debt and avoid heavy tax penalties related to the sale. McDonnell Douglas is among the companies submitting initial bids. The aircraft, rocket and missile manufacturer is interested in acquisitions that will enable the company to grow, retain its market share and keep the prices of its products under control.

Other Electrical Equipment and Component Manufacturing, Electronic Components and Accessories, Military Electronics, Mergers, acquisitions and divestments, Defense industry, Divestiture, Divestment

---

Texas Instruments bets that an old chip will find a multitude of new markets

Article Abstract:

Texas Instruments (TI) is staking its future on the digital signal processors (DSP), the technology first used in the Speak & Spell toy, designed in 1976. TI already leads the DSP market with a 45% share and is selling its toy, defense, and notebook computer businesses to focus on the technology, which CEO Thomas J. Engibous believes will have myriad future uses, especially in communications products. The DSP has higher profit margins than the microprocessor and is programmed to focus on a specific task, often audio and video functionality. TI hopes the technology will help it regain its position in the technology vanguard. The company introduced the first pocket calculators, microprocessors, digital watches, and home computers but failed to capitalize on its technological edge. A core group of engineers have kept up development of the DSP and have encouraged innovation throughout the company.

Other Communications Equipment Manufacturing, Digital Signal Processing Equip, Planning, Innovations, Company business planning

---

Texas Instruments aims to grow big by thinking small; with DSP chip line, the strategy is that no deal is too little to ignore

Article Abstract:

Texas Instruments Inc., the company that invented the semiconductor, has restructured itself in an effort to become a dominant supplier of digital signal processors. TI, divesting itself of its missile, military electronics and memory chips businesses, has refocused on research and development with regard to DSPs. The company, facing with defense spending cuts and declining semiconductor memory prices, decided to take advantage of the 30% annual growth in the digital signal business by developing devices for telephone, modem and laser printer markets as well as untried markets such as digital music players and compressed music. With 47% of the 1998 DSP market and a 35% profit rise, Texas Instruments' shares have tripled in the last eight months to $132.625.

Semiconductors and related devices, Semiconductor and Related Device Manufacturing, Digital ICs NEC, Marketing, Digital integrated circuits

Similar abstracts:

• Abstracts: Clinton authorizes $20 billion U.S.loan for Mexico; international donors add $29.5 billion. Clinton issues economic plan
• Abstracts: Keys to success in corporate redesign. The future of business education. Information technology, organization, and the response to strategic challenges
• Abstracts: Case studies: software solutions for international accounting problems. T&E expense: to outsource or not?
• Abstracts: Tax cuts bill moving. Wyatt in chief accountant's office. Seek compromise on independent contractors
• Abstracts: Inequality, mobility and income distribution comparisons. Some implications of changing the tax basis for pension funds

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.