Broadcom Offers to Acquire Qualcomm for $103 Billion

Qualcomm expected to keep their extra m and say no to Broadcom

Qualcomm, based in San Diego, said that it is reviewing the bid, and that it will have no comment until that review is completed by its board.

Chipmaker Broadcom has put in a $103 billion offer to buy rival Qualcomm Inc, in what could mark the biggest technology acquisition in history.

Last week, Qualcomm reported revenue of $22.3 billion (£17 billion) for 2017, but Broadcom says the combined company could deliver revenues of around $51 billion (£38.9 billion).

The Broadcom offer of $70 per share to Qualcomm stockholders would be $60 per share in cash and $10 per share of Broadcom. The proposed transaction is valued at approximately $130 billion on a pro forma basis, including $25 billion of net debt, giving effect to Qualcomm's pending acquisition of NXP on its now disclosed terms.

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. "We would not make this offer if we were not confident that our common global customers would embrace the proposed combination", said Tan in a press statement.




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

Broadcom, Qualcomm and NXP together would have control over modems, Wi-Fi, GPS and near-field communications chips, a strong position that could concern customers such as Apple and Samsung Electronics Co Ltd because of the bargaining power such a combined company could have to raise prices.

It is said that if Broadcom merges with Qualcomm, combination of Broadcom with Qualcomm will make Broadcom third largest Chip makers in the world.

Broadcom also could spin out Qualcomm's licensing arm, QTL, to get regulatory approval and funding for the deal, raising as much at US$25 billion from a sale, Nomura Instinet analyst Romit Shah suggested.

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

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