Google, Microsoft concerned that a Broadcom acquisition of Qualcomm will benefit Apple

Google, Microsoft concerned that a Broadcom acquisition of Qualcomm will benefit Apple
Google and Microsoft are among some of the major tech outfits that have complained to Qualcomm about the ramifications of a Broadcom acquisition of the chipmaker. Currently, Broadcom has a $70 a share deal on the table ($105 billion) for Qualcomm consisting of $60 in cash and $10 in Broadcom shares. While there are sources suggesting that Qualcomm would be a willing seller at $80 a share and up, Broadcom is looking to install its own candidates on Qualcomm's board, hoping that a proxy battle can help it win the company at the current bid price.

Google and Microsoft are concerned about the long shadow that Apple is casting across the deal. Apple and Qualcomm are enmeshed in a number of lawsuits and the relationship between the two is so bad that Apple is said to be looking elsewhere for a new supplier of modem chips for 2018 CDMA iPhone models. Currently, Intel modem chips are used inside GSM variants of the iPhone, and that will probably remain the case next year.

Microsoft has started to compete with the Apple iPad by producing a series of hybrid tablet/laptops that are the first Windows 10 PCs  to be powered by Qualcomm chips. Google has plenty of skin in this game with the majority of Android phone manufacturers using Qualcomm chips as well. The pair are afraid that if Broadcom buys Qualcomm, the newly merged company would favor Apple over their interests. For example, Broadcom Chief Executive Hock Tan has reportedly said that he is optimistic about settling the multiple lawsuits with Apple if his company buys Qualcomm. And with Broadcom's reputation as a cost cutter, Microsoft and Google fear that a merger will sharply curtail innovation in the industry.

While Qualcomm might feel good about having Google and Microsoft on its side, the company has supposedly told the pair not to be too vocal in publicly opposing the deal. Qualcomm wants to see if it can wrangle that extra $10 a share out of Broadcom, proving that everybody has a price.

source: CNBC

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17 Comments

1. Martineverest

Posts: 521; Member since: Oct 27, 2015

True.... It's better Intel buys Qualcomm

45. Nopers unregistered

No that’d be terrible for everyone.

2. androapplephone

Posts: 42; Member since: Oct 04, 2011

If google and especially Microsoft are not concerned about Apple by this point wow were have they been in the last 10 years

3. Phullofphil

Posts: 1762; Member since: Feb 10, 2009

I was just going to say the same thing.

4. Martineverest

Posts: 521; Member since: Oct 27, 2015

They, especially Microsoft is concerned about surface phone and 'always connected pc', which could help reduce apples flexing muscles

5. Derekjeter

Posts: 1466; Member since: Oct 27, 2011

I told you!!!! Silent partner in all this is APPLE!!!!

7. MrShazam

Posts: 987; Member since: Jun 22, 2017

What has broadcom done for the indistry? Just selling me-too wireless chipsets as far as I know, no innovation. I sure hope this doesn't go through. Don't need nor want the chipset industry slowing down...

10. worldpeace

Posts: 3127; Member since: Apr 15, 2016

It's a big company.. Big enough to buy Qualcomm.. (obviously, lol)

19. xfire99

Posts: 1205; Member since: Mar 14, 2012

Obvious not Big enough to pay the price Qualcomm demanded. Lol?

24. mootu

Posts: 1500; Member since: Mar 16, 2017

Not obviously, they are only valued at $86 billion, with yearly sales of $15 billion so they are getting a huge amount of backing from someone.

32. HansP

Posts: 542; Member since: Oct 16, 2011

Yeah it does stink of something. Broacomm would have to get loans almost against their entire value to buy it. The interests they'd be left with paying would eat all of their profits and then some.

33. iushnt

Posts: 3086; Member since: Feb 06, 2013

So now a Days $86 billion is referred as ‘only’?

39. darkkjedii

Posts: 30966; Member since: Feb 05, 2011

So I guess you have way more than that right?.....riiiiiiiight.

44. mootu

Posts: 1500; Member since: Mar 16, 2017

Don't be stupid, you know exactly what i was refering to. How can a company that is valued at around $86 billion and sales of $15 billion per annum afford to offer $105 billion for Qualcomm? Someone with very deep pockets is bank rolling this takeover bid.

12. domfonusr

Posts: 1083; Member since: Jan 17, 2014

Could it really be that Apple is the bigger bully over Qualcomm? If Apple is on Broadcom's side, and Broadcom gets the deal, thus ending the conflict favorably for Apple, what would that tell us about the amount of power wielded by Apple?

13. worldpeace

Posts: 3127; Member since: Apr 15, 2016

"Microsoft has started to compete with the Apple iPad by producing a series of hybrid tablet/laptops that are the first Windows 10 PCs to be powered by Qualcomm chips" Nah, SD835 powered win10 will compete as cheaper variation of Ms Surface. Win10 is a proper desktop OS unlike iOS, so they won't compete with iPad. If you do work (real work not just typing and browsing) get win10 device, If you just want to play candy crush in bigger screen, get iPad

43. Ezio2710

Posts: 548; Member since: Aug 22, 2015

I believe in optimization, not high spec numbers. Now a days midrange phones are more reliable than so what called flagship

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