Sequans is a company that makes special computer bits for things like cell phones and cars. They sold some of their 4G (like the old version of cell phones) computer bits to another big company called Qualcomm for $200 million dollars. Because they sold these 4G bits, they can still make and sell 5G (the new and better version of cell phones) computer bits. This deal is good for Sequans because they can have more money to make and sell more computer bits in the future. Read from source...

This article by Nabaparna Bhattacharya, Benzinga Editor dated August 23, 2024, provides a comprehensive overview of Sequans' recent $200M deal with Qualcomm to sell its 4G IoT technology. The story's title itself, 'Sequans Shares Surge Following $200M Sale Of 4G IoT Technology To Qualcomm,' tends to create a positive, optimistic narrative around the deal. However, the article, unfortunately, lacks a neutral, balanced, and objective point of view. It seems to have an inherent bias towards Sequans and Qualcomm and tends to oversimplify the complexities of such a big-ticket deal. For instance, it highlights only the positives of the deal for Sequans, such as retaining the 5G ownership and strengthening its balance sheet, while completely ignoring potential negatives, such as Sequans potentially losing valuable employees to Qualcomm, as a result of the deal. The article's tone also comes across as quite promotional and victory-laden, rather than sticking to the principles of journalistic integrity. The report even provides a prescriptive statement, with the quote from Georges Karam, CEO of Sequans, sounding more like a press release than a news report. This also tends to skew the story towards the narrative that Sequans is pushing the boundaries of innovation, despite not providing any verifiable evidence to back up this claim. Overall, the article could have benefitted from a more critical, nuanced, and evidence-based analysis of the deal, rather than a simplistic, promotional, and optimistic approach.

bullish. Sequans shares surge following $200M deal with Qualcomm.

Sequans SQNS shares have seen a significant surge following the announcement of a $200 million sale of its 4G IoT technology to Qualcomm. The acquisition by Qualcomm strengthens its Industrial IoT portfolio, offering low-power solutions that provide reliable and optimized cellular connectivity for IoT applications. The acquisition also helps Sequans retain the license for its 4G IoT technology, enabling it to continue serving its IoT markets with a strengthened balance sheet, while maintaining full ownership of its 5G technology. As part of the transaction, Sequans will receive $185 million in cash, including $175 million at closing and up to $10 million after a one-year warranty period. Despite the surge in SQNS shares, investors should consider the risks associated with the transaction, including French regulatory approval, customary closing conditions, and potential changes in contractual obligations or operations with customers, suppliers, and industry partners. Additionally, Sequans' preliminary second-quarter results show modest revenue growth, and the expected impact of the pending Qualcomm transaction on licensing and services results for the second half of the year is yet to be finalized. Investors should also note that the allocation of the purchase price of the pending Qualcomm transaction will not be finalized until the fourth quarter. Despite these risks and uncertainties, SQNS shares are trading higher by 157% premarket at last check, indicating investor optimism for the company's future growth prospects.