Texas Instruments to Move Stock Listing to Nasdaq From NYSE
Texas Instruments Inc. (TXN) is transferring its listing to the Nasdaq Stock Market from the New York Stock Exchange, becoming the biggest company ever to make the move.
The second-largest U.S. chipmaker will start trading on Nasdaq OMX Group Inc. (NDAQ)’s venue on Jan. 3, keeping its TXN symbol, the Dallas-based company said today in a statement. Texas Instruments, developer of the first commercial silicon transistor in the 1950s, first listed its stock at the NYSE Euronext (NYX) market almost six decades ago, according to the company’s website.
Nasdaq also won the listing of Viacom Inc., the owner of MTV Networks and Paramount Pictures, from NYSE this year. Texas Instruments and Viacom were valued at a combined $57.5 billion when their shifts were announced. Technology and media shares make up a bigger proportion of the Nasdaq Composite Index (CCMP), which includes Apple Inc., Microsoft Corp. and Intel Corp., than the NYSE Composite Index (NYA), data compiled by Bloomberg show.
“The likely motivation is annual cost saves from Nasdaq’s cheaper listing venue versus NYSE’s,” Jonathan Casteleyn, analyst at Susquehanna International Group LLP said in an e-mail today. “It is not abnormal for a company to want to trade on a venue of companies in a similar sector.”
Nasdaq-100 Index
Technology and media companies account for about 52 percent and 6.2 percent, respectively, of the Nasdaq index’s value, compared with 7.1 percent and 1.7 percent for the NYSE gauge, data compiled by Bloomberg show. Texas Instruments, given its market value, would be about the 17th-biggest (NDX) stock in the Nasdaq-100 Index, a measure of the 100 largest non-financial companies listed by the exchange.
Companies that shifted to NYSE from Nasdaq this year include Imax Corp. (IMAX), the operator of large-screen theaters, broadband service provider Level 3 Communications Inc. (LVLT) and Joy Global Inc., the maker of P&H and Joy mining equipment.
“It’s highly competitive,” Chris Allen, a New York-based analyst at Evercore Partners Inc. (EVR), said in phone interview. “The exchanges obviously compete on price, they also offer secondary services along with the listing in terms of corporate communications, market surveillance. So this could be a combination of things.”
Texas Instruments shares rose 1 percent to $28.33 at 12 p.m. New York time, trimming their loss to 5.3 percent since the company lowered its fourth-quarter sales forecast on Dec. 8. Texas Instruments gets most of its revenue from analog chips, which are key components in everything from missiles to washing machines.
To contact the reporters on this story: Ksenia Galouchko in New York at kgalouchko1@bloomberg.net; Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
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