NYSE Takes Another Lick As Texas Instruments Nuzzles Up To Nasdaq

Trefis Team

Nasdaq OMX has taken a lead in the stock listing battle against NYSE Euronext as Texas Instruments has decided to transfer its stock listing to the Nasdaq from the New York Stock Exchange (NYSE) early next year.

Both stock exchanges offer promotions and incentives to companies in order to poach them from rival exchanges. Nasdaq’s exchange has traditionally been a preferred listing venue for technology companies but Texas Instruments, the developer of the first commercial silicon transistor, has been listed on the New York Stock Exchange for more than 60 years now.

The company believes that the transfer to Nasdaq will be more cost effective than staying on NYSE. [1]

See our full analysis of Nasdaq OMX

We have a price estimate of $25.84 on Nasdaq OMX’s stock, about the same as the current market price.

Texas Instruments has a market cap of over $32 billion and is one of the biggest companies to transfer listing from NYSE to Nasdaq ever. Media company, Viacom Inc, has also decided to switch to Nasdaq from NYSE earlier this month due to cost savings.

A total of seven companies, with a combined market capitalization of $78 billion, have moved their listing to Nasdaq from NYSE this year compared to 12 companies, with a combined market capitalization of only $29 billion, that have moved to NYSE from Nasdaq.

Large companies with huge number of shares outstanding pay higher fees on NYSE than smaller ones and have the incentive to move their listing to Nasdaq. A company can pay up to $500,000 for an NYSE listing fee while Nasdaq fees are capped at about $100,000. [2]

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Notes:

  1. Texas Instruments to Move Stock Listing to Nasdaq From NYSE, Bloomberg, December 15, 2011 []
  2. 3rd UPDATE: Nasdaq Scores Texas Instruments Amid Heated Listings Battle, WSJ, December 15, 2011 []

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