IT&Software

Broadcom offers to acquire Qualcomm for $70 per share

Broadcom offers to acquire Qualcomm for $70 per share

Qualcomm's chips and patents affect nearly every smartphone model in the world, and Broadcom is offering $70 a share, which is a 28pc premium on Qualcomm's closing stock price last Thursday (2 November) according to a report in The New York Times. Including debt, Broadcom's bid values the transaction at $130 billion.

Since publication Broadcom and Qualcomm have confirmed the offer, with Broadcom disclosing that the bid of $70 a share is made up of $60 cash and $10 in Broadcom shares.

Broadcom said Monday that it was confident that "common global customers" would "embrace" the deal.

Qualcomm is preparing to fend off the unsolicited offer, arguing it undervalues the company, people familiar with the plans have said.

Tan visited President Trump at the White House last week to announce that Broadcom would be moving its headquarters from Singapore to Delaware.

"Broadcom's proposal is compelling for stockholders and stakeholders in both companies".

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A Trump campaign supervisor encouraged Papadopoulos to make the trip "if it is feasible" on August 15, 2016. Trump or campaign officials in conspiring with Russian Federation to affect the outcome of the election.


One aspect that might be an issue is Qualcomm's efforts to close its $38-billion acquisition of NXP Semiconductors NV, which makes chips for vehicles with an eye to self-driving technology.

However, the Financial Times reports two unnamed sources who claim that Qualcomm's shareholders could be set to reject the takeover, claiming the valuation is too low and the merger would face significant regulatory challenges.

Broadcom is looking to complete its $5.5 billion purchase of Brocade Communications Systems Inc (BRCD.O) while Qualcomm is in the process of closing its deal for NXP. The forward price-to-earnings ratio for Broadcom recently stood at 14.6, slightly above its 13.5 average.

Broadcom said if the deal is approved, it expected a combined company to have revenues of about $51 billion.

Antitrust concerns over a Broadcom-Qualcomm deal also may be muted because the companies have few areas of overlap beyond Wi-Fi solutions for wireless routers, Bluetooth drivers and some RF semiconductors, said Rob Lineback, a research analyst at IC Insights.