Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Operational Security //

Policy

3/13/2018
06:30 AM
Scott Ferguson
Scott Ferguson
News Analysis-Security Now
50%
50%

Trump Cites National Security to Kill Broadcom's Proposal for Qualcomm

In an executive order released Monday, the Trump Administration cited national security concerns to block Broadcom's proposal to acquire Qualcomm.

President Donald Trump issued an executive order on Monday to block Broadcom's $117 billion bid for Qualcomm, citing national security concerns to kill the deal.

Over the last several weeks, the Broadcom deal had come under increasing government scrutiny. On Monday, before the president's announcement, Light Reading reported that the Singapore-based company was attempting to show that it had valid interests in US to help placate the federal Committee on Foreign Investment in the US (CFIUS). (See Unknown Document 741344.)

Qualcomm, which had been fighting the deal, is based in San Diego. (See Unknown Document 741367.)

In addition, the Wall Street Journal reported over the weekend that Intel was eyeing its own deal for Broadcom, further muddying the acquisition waters and raising questions of who owns who. (See Unknown Document 741310.)

(Source: Pixabay)
(Source: Pixabay)

However, Trump's executive order quashed all that, noting that national security can override any business concerns.

"The proposed takeover of Qualcomm by the Purchaser is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited," according to the order released Monday.

The executive order also disqualifies all 15 people who Broadcom proposed to sit on Qualcomm's board of directors.

While Trump's executive order did not cite a specific national security concern, CFIUS has raised concerns about how the deal could weaken Qualcomm's "leading position" in setting the new 5G standard, and China would then take a lead in developing these technologies. This could, according to the agency, weaken communications infrastructure in the US. (See Trump's 5G Nationalization Plan: Is It Good for Security?)


The fundamentals of network security are being redefined -- don't get left in the dark by a DDoS attack! Join us in Austin from May 14-16 at the fifth annual Big Communications Event. There's still time to register and communications service providers get in free!

The Trump order notes:

The Purchaser and Qualcomm shall certify to CFIUS on a weekly basis that they are in compliance with this order and include a description of efforts to fully and permanently abandon the proposed takeover of Qualcomm and a timeline for projected completion of remaining actions.

In the past several weeks, the Trump administration has raised national security as part of its approach to regulating business and the economy. When the president announced steel and aluminum tariffs last week, he cited national security as a main concern, although not everyone is convinced.

Related posts:

— Scott Ferguson, Editor, Enterprise Cloud News. Follow him on Twitter @sferguson_LR.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Edge-DRsplash-10-edge-articles
I Smell a RAT! New Cybersecurity Threats for the Crypto Industry
David Trepp, Partner, IT Assurance with accounting and advisory firm BPM LLP,  7/9/2021
News
Attacks on Kaseya Servers Led to Ransomware in Less Than 2 Hours
Robert Lemos, Contributing Writer,  7/7/2021
Commentary
It's in the Game (but It Shouldn't Be)
Tal Memran, Cybersecurity Expert, CYE,  7/9/2021
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
Enterprise Cybersecurity Plans in a Post-Pandemic World
Download the Enterprise Cybersecurity Plans in a Post-Pandemic World report to understand how security leaders are maintaining pace with pandemic-related challenges, and where there is room for improvement.
Flash Poll
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2021-40825
PUBLISHED: 2021-09-17
nLight ECLYPSE (nECY) system Controllers running software prior to 1.17.21245.754 contain a default key vulnerability. The nECY does not force a change to the key upon the initial configuration of an affected device. nECY system controllers utilize an encrypted channel to secure SensorViewTM configu...
CVE-2019-9060
PUBLISHED: 2021-09-17
An issue was discovered in CMS Made Simple 2.2.8. It is possible to achieve unauthenticated path traversal in the CGExtensions module (in the file action.setdefaulttemplate.php) with the m1_filename parameter; and through the action.showmessage.php file, it is possible to read arbitrary file content...
CVE-2021-38304
PUBLISHED: 2021-09-17
Improper input validation in the National Instruments NI-PAL driver in versions 20.0.0 and prior may allow a privileged user to potentially enable escalation of privilege via local access.
CVE-2021-41317
PUBLISHED: 2021-09-17
XSS Hunter Express before 2021-09-17 does not properly enforce authentication requirements for paths.
CVE-2021-41315
PUBLISHED: 2021-09-17
The Device42 Remote Collector before 17.05.01 does not sanitize user input in its SNMP Connectivity utility. This allows an authenticated attacker (with access to the console application) to execute arbitrary OS commands and escalate privileges.