Recommended Free Tools
Broadcom announced its agreement to acquire SiByte on November 6, 2000. Contemporary coverage valued the all-stock deal at about $2.04 billion, but Broadcom later reported estimated acquisition costs of $907.912 million using a different accounting basis. Those figures describe different measures, not a cash payment and a corrected price.
What Broadcom agreed to buy
SiByte, based in Santa Clara, California, developed high-performance MIPS-based processor chips for networking and communications applications. The processors were specialized infrastructure components, not consumer chips sold directly to ordinary buyers.
Broadcom’s November 6, 2000 announcement described a definitive agreement to acquire the company. Its release said the transaction involved an aggregate issuance of up to 9.3 million Broadcom shares; a portion was reserved for future issuance subject to performance goals. Broadcom’s announcement framed the deal as a way to bring network processors alongside its IP switches, communications digital signal processors, IP security solutions, and physical-layer transmission products.
Why the deal was reported as $2.04 billion
On November 6, 2000, EE Times reported the expected all-stock acquisition at about $2.04 billion, reflecting Broadcom’s stock value around the announcement. It was a headline valuation of the stock consideration at that time, not a statement that Broadcom paid $2.04 billion in cash. EE Times’ contemporaneous report also quoted Broadcom CEO Henry Nicholas III describing the technology as the world’s fastest and lowest-power MIPS industry-standard broadband processor technology. That was Broadcom’s promotional characterization, not an independently established performance ranking.
Why Broadcom later reported a lower figure
Broadcom’s later pro forma disclosure estimated total acquisition costs at $907.912 million, based on the shares and related equity compensation as valued for accounting purposes. That accounting estimate uses a different date, valuation basis, and treatment of consideration from the announcement-era stock-market headline. It should not be described as cash paid or as a correction of the $2.04 billion figure. Broadcom’s pro forma disclosure reports that the acquisition was completed on December 15, 2000.
| Figure | What it represents |
|---|---|
| About $2.04 billion | EE Times’ November 6, 2000 estimate of the all-stock deal based on Broadcom’s stock value around announcement. |
| Up to 9.3 million shares | Aggregate share issuance described in Broadcom’s November 6, 2000 announcement; some shares were contingent on performance goals. |
| $907.912 million | Broadcom’s later pro forma estimate of total acquisition costs, including shares and related equity compensation valued for accounting purposes. |
What Broadcom expected SiByte to add
Broadcom said SiByte’s network processors would complement its existing products and broaden its portfolio for networking and Internet infrastructure. The company also reported multiple design wins and firm multi-year purchase contracts covering more than 1.3 million units in its November 6, 2000 release. That volume is Broadcom’s own announcement figure, not an independently verified shipment total.
The sources cited here establish the acquisition’s rationale and completion, but do not establish a post-acquisition market-share, performance-benchmark, or revenue result for SiByte’s technology.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
Do these 3 things before closing this tab:
1Fix the driver behind crashes, sound loss and screen glitches2Repair Windows errors before they cause bigger problems3Scan for outdated or missing drivers - takes under a minute
