Qualcomm says that for $160 billion, it will agree to a purchase by Broadcom

Qualcomm says that for $160 billion, it will agree to a purchase by Broadcom
The last time we checked in on the soap opera that is Broadcom's attempt to acquire Qualcomm, the latter had just raised its bid for auto chip maker NXP by 16% to $44 billion. That made Broadcom a little ticked off, to say the least. So the wireless and telecom chip provider decided to cut its offer for Qualcomm by 4% to $117 billion, or $79 a share from the previous $82 a share bid.

But all of this financial maneuvering is covering up what is really going on here. On March 6th, Qualcomm stockholders vote for the company's Board of Directors. There are 11 seats on the board, and Broadcom has put up a slate of six nominees. If Broadcom wins all six seats it is seeking, it will have a majority of Qualcomm's board and will be able to vote in favor of the Broadcom transaction. Did you think that takeover battles were boring? Guess again.

On Valentine's Day, both sides sat down, hoping that the other company would get hit by cupid's arrow and capitulate. But that didn't work. Now, Qualcomm is saying that it will agree to be bought out if Broadcom raises its bid to $160 billion. That would be a 36% hike from the current offer.

Depending on how badly Broadcom wants the company that delivers the Snapdragon line of mobile chips, the good news is that it now has an idea of how deep they will have to dig into their pockets to buy Qualcomm. At $160 billion, a Broadcom-Qualcomm transaction would not only be the largest tech deal in history, it also would be the third largest of all time after AOL's $162 billion purchase of Time Warner, and Vodafone's record $180 billion acquisition of Mannesmann.

source: TheVerge

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12 Comments

1. Derekjeter

Posts: 1459; Member since: Oct 27, 2011

Apple will put up the money. They can afford it. I’ve been saying all along since day one. Apple is behind this deal .

2. KingSam

Posts: 1403; Member since: Mar 13, 2016

Sucks for everyone that isn't Huawei or Samsung.

4. ijuanp03

Posts: 529; Member since: Dec 30, 2014

Mediatek is still around and it's high time this Chinese company shows its true potential.

6. deewinc

Posts: 455; Member since: Feb 21, 2013

Taiwanese?

3. Klinton

Posts: 1408; Member since: Oct 24, 2016

As long as Samsung stays behind Qualcomm, with all Samsung's tech and innovations, you should not worry about Qualcomm! Qualcomm count on Samsung, and Samsung count on Qualcomm to have the US's market. Samsung will not be let on US market with only Exinos. That's why Exinos versions are only outside US. BTW Samsung made (and innovate) on Apple's SoCs too/

5. mootu

Posts: 1449; Member since: Mar 16, 2017

Samsung can use Exynos anywhere they like, it just cheaper to use the SD range of SoC's due to the licence payments they would have to pay Qualcomm. Qualcomm has the US market completely sewn up tight with all it's patents and charge ridiculously high prices for using them. Thats the reason Apple has them in court, for Qualcomm's abuse of the FRAND system.

7. deewinc

Posts: 455; Member since: Feb 21, 2013

There was a year that Samsung omitted the SDG from it's flagships due to overheating of the SoC. So I guess they can do so without SDG.

9. foreverNOOB

Posts: 149; Member since: Jul 07, 2017

That was because Samsung paid for the licensing fee to be able to sale S6 families.

10. Klinton

Posts: 1408; Member since: Oct 24, 2016

It was Samsung that solve the overheating SDG issue for Qualcomm. And now help Qualcomm, and cooperate with. Of course Samsung could do with Exinos in US, but to have US company on their side, is better for the US market(and media)

8. antroid

Posts: 376; Member since: Jan 24, 2018

How come Qualcomm don't see the connection between Broadcom and Apple. Hope this deal won't get trough, we need more competition

11. duckofdeath unregistered

If you get one hundred sixty billion dollars for your business, you probably wouldn't care either about who the buyer is. Regulators are the ones who should worry about this deal, as it's so clear it's there to kill competition.

12. biostangoodtang1984

Posts: 36; Member since: Feb 14, 2018

Yeah takeover battles are really very boring :-(

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