Shorts hold 34.44% of Skyworks' float against the Qorvo merger's $500 million savings promise
Skyworks closed its $9.7 billion Qorvo combination on October 5 and swapped $1.42 billion of Qorvo bonds for its own paper. The register now splits: 34.44% of the float sold short as of September 15, against Abigail Johnson's 12.6% passive stake and Street targets from $61 to $107.
Vincent Jiang · 3 min read
The close came with the debt attached
Skyworks−3.65% — Skyworks, down 3.65 percent today completed its $9.7 billion combination with Qorvo+1.75% — Qorvo, up 1.75 percent as of its last quote on October 5, 2026, ending a 69-year Qorvo and RF Micro Devices era in Greensboro 1. Qorvo holders received $32.50 in cash plus 0.960 of a Skyworks share each, and the new board splits eight Skyworks seats to three Qorvo 12. Legacy Skyworks investors own about 63% of a company the two sides valued at $22.4 billion, a worth for the whole merged group rather than the price of Qorvo's stock 1. The stock closed at $76.35 on October 9, down 10.2% across the week 3.
The debt moved within 48 hours
The debt settled within 48 hours of the close 4. Holders tendered 91.7% of Qorvo's $850 million of 4.375% notes due 2029 and 92.4% of its $700 million of 3.375% notes due 2031; Skyworks issued $778.1 million and $646.8 million of matching paper, leaving roughly $123 million of Qorvo bonds outstanding 4. Management projects $500 million or more in annualized savings within 24 to 36 months 2.
Ninety percent of Qorvo's bonds swapped into Skyworks paper
- Qorvo notes outstanding
- New Skyworks paper issued
Data
| Qorvo notes outstanding | New Skyworks paper issued | |
|---|---|---|
| 4.375% notes due 2029 | $850M | $778.1M |
| 3.375% notes due 2031 | $700M | $646.8M |
The shorts already voted
Short interest stood at 32,713,338 shares on September 15, 34.44% of the float, even after a 5.34% drop from August 31 5. One in three tradeable shares is borrowed and sold. The case is the top line: quarterly revenue has slid from $1.22 billion in late 2023 to $934.8 million in the June quarter, down 3.1% year over year 67. Mizuho lifted its target to $61 from $52 on October 9 and still rates the stock underperform, implying about 21% downside 6.
Legacy Skyworks revenue is 23% below its late 2023 peak
Data
| Revenue | |
|---|---|
| Q3 '23 | $1.22B |
| Q4 '23 | $1.2B |
| Q1 '24 | $1.05B |
| Q2 '24 | $0.91B |
| Q3 '24 | $1.03B |
| Q4 '24 | $1.07B |
| Q1 '25 | $0.95B |
| Q2 '25 | $0.97B |
| Q3 '25 | $1.1B |
| Q4 '25 | $1.04B |
| Q1 '26 | $0.94B |
| Q2 '26 | $0.94B |
The other side is buying
Abigail Johnson filed a 12.6% passive stake as of September 30, an SEC disclosure shows 8. The buying turns active from there: T. Rowe Price added 11.5 million shares in the second quarter, about $779 million worth 5. B. Riley upgraded to buy at $107, from $68; Citigroup went to $90 from $64 and stayed neutral; RBC set $95 6. Seventeen of 24 analysts still say hold 6. The bull pitch is an addressable market the company says more than doubles, into physical AI, defense and aerospace, and data center networking 2.
Street targets for Skyworks span $61 to $107 around a $76 close
- Estimate
Data
| Value | |
|---|---|
| Mizuho (estimate) | $61 |
| Morgan Stanley (estimate) | $72 |
| Citigroup (estimate) | $90 |
| RBC (estimate) | $95 |
| B. Riley (estimate) | $107 |
November prices the promise
Credit voted first: better than nine in ten Qorvo bondholders took Skyworks paper rather than hold out 4. The equity rule is one sentence: a synergy print that holds the $500 million line 2 sends 32.7 million borrowed shares looking for an exit through 4.17 days of trading volume 5, into a stock already down 10% on the week 3, while a miss leaves the shorts paid to wait. The first combined guidance lands on the fiscal fourth-quarter call, November 3 2.
Deepdive
AI-generated from this story and its cited sources. Not investment advice.
