November 6, 2017
Semiconductor provider Broadcom made a $130-billion takeover bid for rival Qualcomm today, in a move that would make the company an even larger force to be reckoned with in the mobile chip industry.
Broadcom is offering $70 per share — $60 in cash and $10 per share in Broadcom shares — to acquire all of Qualcomm’s outstanding stock. If the deal goes through, it would be the largest technology takeover to date.
“This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products,” Broadcom CEO Hock Tan said. “We would not make this offer if we were not confident that our common global customers would embrace the proposed combination. With greater scale and broader product diversification, the combined company will be positioned to deliver more advanced semiconductor solutions for our global customers and drive enhanced stockholder value.”
Broadcom has completed five major acquisitions in the past four years, so the company is an old pro at the takeover process.
The bid may be a blessing for Qualcomm which is struggling under the weight of both regulatory woes and legal challenges. The company, for instance, is embroiled in a legal battle with Apple over patent fees.
Broadcom’s proposal has been unanimously approved by its board of directors. If an agreement is signed between the two companies, the transaction would be completed within one year of the signing date.
Qualcomm has yet to comment on Broadcom’s plan.
Jennifer Cowan is the Managing Editor for SiteProNews.