Worldwide

Qualcomm will reportedly reject Broadcom's offer

Qualcomm will reportedly reject Broadcom's offer”

Qualcomm has firmly rejected Broadcom's unsolicited offer to acquire the company, deeming the $130 billion offered as a "significant undervaluation".

The technology sector's largest takeover ever has been denied after chipmaker Qualcomm rejected a $130bn (€111.43bn) buyout offer from Broadcom.

"After a comprehensive review, conducted in consultation with our financial and legal advisors, the board has concluded that Broadcom's proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty".

Broadcoms offer was for $70 a share – valuing Qualcomm at just north of $100 billion dollars (the deal would include $25 billion of debt).

While Tan did not specifically address whether Broadcom would make a hostile bid, he said, "It remains our strong preference to engage cooperatively with Qualcomm's board of directors and management team". They've said they're still committed to merging the companies, which might mean we'll see a significantly larger offer or some other more aggressive tactics. But Qualcomm is understood to view it as an opportunistic swoop, coming as the company is under threat from regulatory lawsuits and locked in a spat with Apple.

Qualcomm chief executive Steven Mollenkopf said the California company remains confident of its future on its own
Qualcomm chief executive Steven Mollenkopf said the California company remains confident of its future on its own

It's not clear how Broadcom will respond.

The combined revenue of the three firms in question - Qualcomm, Broadcom and NXP - is expected to touch $51 billion in FY 2017 with EBIDTA of aroud $23 billion, forecasts the semiconductor fiem, justifying its proposal. Qualcomm has more, including the soon to finish NXP acquisition, a great patent portfolio, high-end phone SoC leadership, Modem and WiFi leadership in 4G and 5G and even automotive, the world's first 10nm server and Windows 10 holding great Snapdragon potential.

At the time of writing, Qualcomm shares are priced at $65.50 pre-market.

Qualcomm shares closed at $64.57 on Friday, while Broadcom ended at $264.96.

Shares of Qualcomm have been declining in value in the recent quarters, which is why Broadcom made its proposal.



Like this

Latest


13 November 2017
Krishna river boat tragedy: Locals rushed to rescue
According to PTI , the police said that over 17 others are feared dead, but their bodies are yet to be recovered. Preliminary investigation says boat turned upside down due to overload.

12 November 2017
Alibaba smashes Singles' Day records with 39% sales lift
The Singles Day sales figure significantly dwarfs that of the US' Black Friday and Cyber Monday sales. The 2017 Singles Day sale is already over $3 billion ahead.

11 November 2017
Google readying Android app to manage storage, share files without internet
This allows you to quickly uninstall apps that you are no longer using or you do not use regularly enough to justify the download. Essentially, Google has chose to capitalize on the interest in the new app, thanks to its exposure through media coverage .

10 November 2017
Apple Reportedly Developing Standalone AR Headset For 2019 Release
Microsoft's Hololens requires a PC with pretty hefty specs, and the last Magic Leap prototype we've seen looks pretty bulky. Apparently Apple is looking at creating a standalone augmented reality headset within the next two years.

10 November 2017
Get Your First Look at Jodie Whittaker's Doctor Who Costume!
BBC has unveiled what would be Whittaker's signature costume when the Thirteenth Doctor starts her episodes in 2018. Indeed, that long jacket is very reminiscent of the Tenth Doctor's ( #DavidTennant ) billowing coat .

09 November 2017
Former TV anchor says Kevin Spacey sexually assaulted her son
Kevin Spacey is now the subject of a criminal investigation by police in Nantucket, according to the Boston Globe . A publicist said last week that Spacey is "taking the time necessary to seek evaluation and treatment ".

09 November 2017
IPad Pro to ship with Face ID in 2018
Today's details from Bloomberg shared that next year's iPad Pros will adopt Face ID, which KGI also recently predicted . To replace Touch ID, Apple will introduce the same Face ID technology powered by the new TrueDepth camera on the iPad.

07 November 2017
Paul Ryan Says Congress Will Not Interfere With Robert Mueller's Russia Investigation
If the elder Flynn is indicted, it would be the first charges brought against someone who worked in the Trump White House. And having Flynn's son over a barrel could get him there.

06 November 2017
Netanyahu: Resignation of Lebanese President Highlights Iranian Danger
This is an indication that the resignation was designed to create tension in Lebanon and the region. Hariri's death was followed by a series of assassinations against Hezbollah opponents.

05 November 2017
Daylight Saving Time an opportunity to check your sleep habits
In New York City and along the East Coast of the United States the sun will rise at 6:31 a.m. The shift means it's lighter earlier in the morning and darker earlier in the evening.



Recommended