Free Newsletter

  • Which training workshop is of most value to your organisation?
  • Preparing your business for the Internet of Things
  • The Internet of Things and Cloud computing
  • Radio technologies for connecting the Internet of Things
  • Smart Cities and intelligent infrastructure
  • WebRTC and the end of the telco
Meet the leaders of the mobile app economy ? Open Mobile Summit, London, June 8-9
Navigation Strategies Europe 2011
ITU Telecom World, 24-27 October 2011 at Palexpo, Geneva, Switzerland
Ubiquitous Location and Positioning Technology, 6th-7th December 2011, Chicago
Advertize your telecoms job

Broadcom pounces on Gigle to break into HomePlug AV and

In a deal that we predicted well over a year ago, Broadcom has acquired Gigle networks, a home networking chip designer which is focused on the powerl


Published: 25 November, 2010


In a deal that we predicted well over a year ago, Broadcom has acquired Gigle networks, a home networking chip designer which is focused on the powerline and “no new wires” home networking markets. The deal involves an initial $75 million plus the potential for a further $8 million in performance related payments.

This jumps Broadcom into the and Homeplug AV game, directly up against Sigma’s Coppergate, which launched a MIMO version of HomePlug and the first chips last month, and Atheros which acquired Intellon last September, the chip business which drove the first generation of HomePlug devices, as well as DS2, the Spanish chip designer which was snapped up by Marvell a year ago.

Both DS2 and this Gigle deal must be thought of as “distressed” sales, with DS2 sold from bankruptcy and Gigle going for little more than 2.5 times the $31 million of VC funds which were publicly invested in it by VC firms. The chances are that Gigle also had some debt funding that would not have been publicly announced and there was very little profit on the deal for the VCs behind it.

But for Broadcom it brings an unfinished position which probably needs just a little cash to bring to market, and an established HomePlug and HomePlug AV product line. Gigle also offers a number of home networking switches which work across all forms of physical wire and through powerlines, and its own proprietary Mediaxstream technology which is a wideband superset of them all. Broadcom will almost certainly wish to produce a hybrid chip between WiFi and HomePlug to cover the moves announced by Atheros, but it is known to have had several false starts in home networking and has perhaps lost its way.

We had reports at IBC that a year-long effort to build a MoCA chip had failed and that something similar had been going on for even longer with a set top chip for Microsoft Mediaroom IPTV set tops. Gigle will provide a fresh understanding of these markets for a company known for its massive reach in WiFi and its habit of arriving late into chip markets and commoditizing them.

The home networking business is certainly in need of Broadcom’s scale and ambition.

Gigle is culturally very different from Broadcom and it will be a challenge to keep the company’s clear start-up spirit. The company has a motto of being “just mad enough” to imagine it can create a brand new technology whereas in fact it was “just sane enough to get acquired.”

Gigle had built a set of engineers in Barcelona, Spain and Edinburgh, Scotland, and only had sales people in its Redwood City, California offices.

But Broadcom has been on an acquisition spree of late, spending $316 million to acquire base station chip maker Beceem (mostly for WiMAX base stations) and laid out $86 million to buy Percello, a femtocell SoC builder.

Pages: 1 | 2


Add Comment
No comments yet. Be the first to add a comment!

    European Carrier Mobile Broadband Network Performance

    Analysing and comparing the data speed, latency, network quality and smartphone penetration for 94 mobile carriers in 28 European countries....

    Next Generation Haptics: Market Analysis and Forecasts

    An in-depth study of the growing popularity of haptics-enabled tactile feedback on mobile devices to augment UI interactions and enrich...

    Satellite Phones: Will Dual Mode Help the Phoenix Rise from the Ashes?

    Satellite phones have followed an arduous path since their much-hyped launch more than a decade ago. The hype was followed by an e...

    Mobile Widget Platform Market Analysis: Understanding the Business Case and ROI

    This white paper presents an analysis of the mobile widget platform market, as well as metrics supporting a mobile carrier?s busin...


You must be a registered user to post a comment. or
Username *
Email *
Comment *