Broadcom Offers to Buy Mobile Chipmaker Qualcomm for US$ 103 Billion
On November 6, 2017, Broadcom offered around US$ 103 billion to buy a mobile chipmaker Qualcomm, a biggest tech deal ever signed
Broadcom — a semiconductor company that manufacture products for the wireless and broadband communication industry, owing around US$ 100 billion based in Singapore and the U.S., said on November 6, 2017 that it has offered around US$ 70 per share or US$ 103 billion in cash and stock to buy Qualcomm, a semiconductor and telecommunications equipment company that designs and markets wireless telecommunications products and services.
The deal between the two largest manufacturers of wireless communications chips for mobile phones would raise the stakes for Intel Corp, which is diversifying into smartphone technology from its stronghold in computers.
Broadcom offers 27.6% to Qualcomm’s closing price of $54.84 on November 2, 2017, a day before media reports of a prospective deal fueled the company’s shares. Qualcomm shareholders would get $60 in cash and $10 per share in Broadcom shares, if the deal would be executed successfully. Broadcom’s offer values the transaction at $130 billion, including debt.
Broadcom would further encourage Qualcomm to complete its NXP acquisition, as it has various distribution channels, exposure, and scale to the fastest growing segments in automotive.
Hock Tan, CEO of Broadcom, said that he would not rule out a proxy fight to convince shareholders to replace the board and accept the offer. He further added, “We are well advised and know what our options are, and we have not eliminated any of those options,” He said, “We have a very strong desire to work with Qualcomm to reach a mutually beneficial deal.”
Qualcomm would close its US$ 38 billion acquisition of NXP Semiconductors, one of the largest makers of chips for vehicles and expanding into self-driving technology. Qualcomm said, “It would assess the proposal in order to pursue the course of action that is in the best interests of Qualcomm shareholders.”
You may be interested
Eight Hours Sleep Duration Linked to Cardiovascular RiskMohit Joshi - January 3, 2019
News study revealed that sleeping for ten hours may elevate risk of mortality by 30% as compared to sleeping for seven hours Researchers from Keele University conducted…
Tax Deductions and Credits Can Take a Chunk of Money Off Your Tax BillPareesh Phulkar - January 2, 2019
When you’re climbing uphill on a mountain of owed taxes, you may easily panic. However, it might not be as scary as it might initially look. As…
Claim your Child and Dependent Care Tax Credit Today with H&R Block 2019Pareesh Phulkar - January 2, 2019
Paying for child care or adult dependent care is one of the costly monthly expenses many families face. But without care, your children can't leave home to…