On Monday semiconductor company Broadcom approached its rival chipmaker Qualcomm with an acquisition offer of $105 billion. If we were to break down their offer, this would mean Broadcom is paying Qualcomm $70 per share.
The bid happens at the same time with Qualcomm’s own pricey acquisition with a $47 billion buyout of NXP Semiconductors. Broadcom stated they still want to acquire the company regardless of the NXP deal happening or not.
TechCrunch contacted a Qualcomm spokesman for a response but he denied to comment on Broadcom’s proposal. However, we do know through a press release that the Qualcomm board of directors received the offer. They will analyze the offer and will follow “the course of action that is the best interests of Qualcomm shareholders.”
Qualcomm established itself as a frontline for cellphone chip technology, but now it’s facing obstacles left and right. In the last 12 months, its stock price fell twenty percent and to make it worse they are also fighting iPhone juggernaut Apple in a lawsuit over software violation agreements. Qualcomm’s management team is still convinced they can win the lawsuit and even rebound if the NXP acquisition liquidates.
Broadcom started out as a Hewlett-Packard division that was quickly bought in 2015 by Avago Technologies. Avago adopted Broadcom’s name, and now it seeks to grow some more. Chief executive of Broadcom Hock Tan appeared on Thursday with President Trump at the White House for an announcement regarding the company. Broadcom would relocate its headquarters from Singapore to the U.S.
In his statement, Hock Tan said he wants to buy Qualcomm because they want to have an extended production scale and a varied line of products. Tan considers the move to be beneficial for both companies.
“The combined company will be positioned to deliver more advanced semiconductor solutions.”
Qualcomm’s share price stands at $61.81 as of Friday.
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