Broadcom Makes $130B Play For Qualcomm

Broadcom Makes $130B Play For Qualcomm

The per share consideration would consist of $60.00 in cash and $10.00 per share in Broadcom shares. Broadcom rose $14.13, or 5.5 percent, to $273.63 a share.

The tie-up would represent the largest technology acquisition ever.

Broadcom CEO Hock Tan was at the White House on Thursday to announce the company's relocation to the United States from Singapore.

In a statement about its proposal, Broadcom president and CEO Hock Tan flagged "greater scale and broader product diversification" as key strategic drivers for the offer.

Intel shares fell 1.6 percent to $46.34.

Broadcom could launch its bid for Qualcomm as soon as this weekend, the person said. It is now incorporated in Singapore and co-headquartered there and in San Jose, California.

Qualcomm declined to comment, while Broadcom did not immediately respond to a request for comment.


This lack of royalty payments is doing significant damage to Qualcomm's bottom line, as the chipmaker revealed last week its profits dropped 90 percent year-over-year.

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

What's more, the firm says that its proposal stands irrespective of Qualcomm's acquisition of NXP goes through or not.

This time, Broadcom is determined to bring its offer to the attention of Qualcomm shareholders.

At issue between the two companies are licensing fees the chipmaker charges for patents covering the basics of how mobile phone systems work.

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

Qualcomm, an early pioneer in mobile phone chips, supplies so-called modem chips to phone makers such as Apple, Samsung and LG that help the phones connect to wireless data networks.

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