source-codesource codeauthorDavid PierceNoneWant your finger on the pulse of everything that's happening in tech? Sign up to get David Pierce's daily newsletter.64fd3cbe9f
×

Get access to Protocol

I’ve already subscribed

Will be used in accordance with our Privacy Policy

Newsletters

The Big Story

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.

People

Beeper built the universal messaging app the world needed

It's an app for all your social apps. And part of an entirely new way to think about chat.

Beeper is an app for all your messaging apps, including the hard-to-access ones.

Image: Beeper

Eric Migicovsky likes to tinker. And the former CEO of Pebble — he's now a partner at Y Combinator — knows a thing or two about messaging. "You remember on the Pebble," he asked me, "how we had this microphone, and on Android you could reply to all kinds of messages?" Migicovsky liked that feature, and he especially liked that it didn't care which app you used. Android-using Pebble wearers could speak their replies to texts, Messenger chats, almost any notification that popped up.

That kind of universal, non-siloed approach to messaging appealed to Migicovsky, and it didn't really exist anywhere else. "Remember Trillian from back in the day?" he asked, somewhat wistfully. "Or Adium?" They were the gold-standard of universal messaging apps; users could log in to their AIM, MSN, GChat and Yahoo accounts, and chat with everyone in one place.

Keep Reading Show less
David Pierce

David Pierce ( @pierce) is Protocol's editor at large. 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.

Latest Stories