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A big bet on chips for cars

Protocol's Shakeel Hashim writes: Analog Devices announced Monday that it's acquiring competitor Maxim Integrated for $21 billion, the biggest U.S. merger announced so far this year.

Both Analog and Maxim make analog semiconductors: chips that take real-world inputs — like sound, light and pressure — and turn them into digital signals that a computer can use. Increased demand for smarter infrastructure and devices, from factories to cars, is driving demand for those chips.

  • The automotive market appears to be a particular driver of this deal. Maxim is strong in the segment, while Analog CEO Vincent Roche confessed that this is a market where Analog has underperformed. Buying Maxim is an easy way to fix that.
  • The two companies also have complementary regional profiles. While Analog is heavily reliant on Western markets, Maxim derives the vast majority of its revenue from Asia, and particularly China. With the Asian market constantly growing in importance, Maxim's customer relationships there could help Analog increase sales for its products in the region, too.

As is often the case with big deals like this, Analog claims it can achieve $275 million worth of cost synergies within two years of the transaction closing, driven by manufacturing efficiencies and lower sales costs.

But this doesn't seem like a purely financial deal. Roche highlighted how tough the competition for hardware talent is right now, with engineers increasingly choosing to go into software instead. By taking a competitor out of the market, Analog hopes that it will be easier to attract top talent.

Protocol | Fintech

A lawsuit tests who controls the stock market

Citadel Securities seeks to block IEX's product that limits high-frequency trading advantages.

Kenneth Griffin is the founder and chief executive officer of Citadel LLC, which argued during Monday's hearing that IEX's D-Limit order type shouldn't have been approved by the SEC.

Photo: Patrick T. Fallon/Bloomberg via Getty Images

Market maker Citadel Securities, stock exchange IEX and the Securities and Exchange Commission each gave oral arguments Monday in a legal case that could have large implications for financial markets.

Last October, Citadel Securities sued the SEC, seeking to reverse the SEC's previous decision last August to approve IEX's D-Limit order type, arguing that this order type would hurt the overall market. The case was argued before the U.S. Court of Appeals Monday.

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Tomio Geron

Tomio Geron ( @tomiogeron) is a San Francisco-based reporter covering fintech. He was previously a reporter and editor at The Wall Street Journal, covering venture capital and startups. Before that, he worked as a staff writer at Forbes, covering social media and venture capital, and also edited the Midas List of top tech investors. He has also worked at newspapers covering crime, courts, health and other topics. He can be reached at tgeron@protocol.com or tgeron@protonmail.com.

If you've ever tried to pick up a new fitness routine like running, chances are you may have fallen into the "motivation vs. habit" trap once or twice. You go for a run when the sun is shining, only to quickly fall off the wagon when the weather turns sour.

Similarly, for many businesses, 2020 acted as the storm cloud that disrupted their plans for innovation. With leaders busy grappling with the pandemic, innovation frequently got pushed to the backburner. In fact, according to McKinsey, the majority of organizations shifted their focus mainly to maintaining business continuity throughout the pandemic.

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Gaurav Kataria
Group Product Manager, Trello at Atlassian

Everything you need to know about the Allbirds IPO

Allbirds wants to become an iconic global brand for shoes and everything else.

Photo: Spencer Platt/Getty Images

The humble venture capitalist puts on her Allbirds one shoe at a time, just like everybody else (or at least everyone else in Palo Alto).

Since its founding in 2015, Allbirds has become an essential component of the tech bro uniform, alongside such staples as the embroidered Patagonia quarter-zip, Lululemon ABC pants, the Zuck-inspired black T-shirt and a Y Combinator-branded Hydro Flask.

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Hirsh Chitkara
Hirsh Chitkara (@ChitkaraHirsh) is a researcher at Protocol, based out of New York City. Before joining Protocol, he worked for Business Insider Intelligence, where he wrote about Big Tech, telecoms, workplace privacy, smart cities, and geopolitics. He also worked on the Strategy & Analytics team at the Cleveland Indians.
Protocol | Policy

It’s Frances Haugen’s world. We’re all just living in it.

With the release of the Facebook Papers, Haugen holds Facebook's future in her hands.

Haugen's decision to open the trove of documents up to outlets beyond the Journal has sparked a feeding frenzy.

Photo: Frances Haugen

Facebook knows a thing or two about optimizing content for outrage. As it turns out, so does Frances Haugen.

Or at least, the heavyweight team of media and political operatives helping manage the rollout of her massive trove of internal documents seems to have learned the lesson well. Because the document dump known as the Facebook Papers, published the same day as Facebook's earnings call with investors and the same week as the conference where it plans to lay out its future as a metaverse company, wasn't just designed for mass awareness.

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Issie Lapowsky

Issie Lapowsky ( @issielapowsky) is Protocol's chief correspondent, covering the intersection of technology, politics, and national affairs. She also oversees Protocol's fellowship program. Previously, she was a senior writer at Wired, where she covered the 2016 election and the Facebook beat in its aftermath. Prior to that, Issie worked as a staff writer for Inc. magazine, writing about small business and entrepreneurship. She has also worked as an on-air contributor for CBS News and taught a graduate-level course at New York University's Center for Publishing on how tech giants have affected publishing.

Here are all the Facebook Papers stories

They paint a picture of Facebook that's very different from what Mark Zuckerberg likes to say.

Image: Getty Images, Protocol

Monday morning's news drop was a doozy. There was story after story about the goings-on inside Facebook, thanks to thousands of leaked documents from Frances Haugen, the whistleblower who wants the information within those files to spread far and wide. Haugen is also set to speak in front of the British Parliament on Monday, continuing the story that is becoming known as The Facebook Papers.

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David Pierce

David Pierce ( @pierce) is Protocol's editorial director. Prior to joining Protocol, he was a columnist at The Wall Street Journal, a senior writer with Wired, and deputy editor at The Verge. He owns all the phones.

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