Table of Contents

• Broadcom

• Salesforce

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Economy & Finance

Broadcom

Broadcom has forecasted a fourth-quarter revenue of about $14 billion, slightly below the $14.04 billion anticipated by Wall Street, primarily due to reduced spending in its broadband division. This announcement came despite a significant increase in orders for its AI chips. In the third quarter, Broadcom's revenue was $13.07 billion, surpassing expectations. However, the company reported a net loss of $1.88 billion, a drop from the previous year's profit, largely due to a one-time $4.5 billion tax charge related to intellectual property realignment in the U.S. Despite this, Broadcom raised its AI revenue forecast for the year from $11 billion to $12 billion, benefiting from strong demand for its custom chips designed for data-intensive operations.

Technology

Salesforce

Salesforce has announced it will acquire the cloud data backup startup Own Co. for $1.9 billion in cash. The transaction, expected to close by January 2025 pending regulatory approval, marks a significant move by Salesforce after a period of reduced acquisition activity. This follows a shift by the company under pressure from activist investors concerned about profitability, especially after high-cost acquisitions like MuleSoft and Slack. The deal, involving a company in which Salesforce had previously invested, highlights Salesforce's renewed focus on enhancing its cloud services amidst a challenging economic climate for tech companies. Own Co., originally valued higher in 2021, has broadened its services beyond Salesforce, including support for competing platforms like Microsoft Dynamics and ServiceNow. This acquisition is part of Salesforce's strategy to improve its profitability and expand its cloud services without affecting its shareholder returns.

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