Qualcomm rejects Broadcom's $103-billion takeover bid

Delia Watkins
November 14, 2017

"We are highly confident that the strategy Steve and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer", said Tom Horton, Presiding Director for Qualcomm Incorporated.

Broadcom and Qualcomm battled through press releases on Monday while investors tried to figure whether the two semiconductor giants would actually merge.

After getting an on-the-record rejection of its buyout bid for Qualcomm (NASDAQ:QCOM), Broadcom (NASDAQ:AVGO) says it's still "fully committed" to the deal.

San Diego-based Qualcomm said the bid undervalues the company's position in thriving areas in the semiconductor industry like mobile, "internet of things", automotive, edge computing and.

In turning down the bid, Qualcomm's chief executive Steve Mollenkopf said management was "confident in our ability to create significant additional value for our stockholders".

This comes shortly after Qualcomm filed another lawsuit against its main chip purchaser, Apple, claiming that it broke a confidentiality clause found in its contract. It said its dominance of the mobile processors market and future growth prospects mean it is unable to accept Broadcom's valuation.

Kim Kardashian had a blossom-themed baby shower
The source says Kim's surrogate did not attend the shower, which was planned by Mindy Weiss. Kim marked the upcoming baby's arrival with a lavish and certainly stunning baby shower .

Broadcom execs believe that, even if Qualcomm's board doesn't like the deal, they can convince enough of the company's shareholders to take the offer and win approval from government regulators.

Broadcom CEO Hock Tan, who said earlier this month he would redomicile his company to the United States from Singapore, has stated he is open to launching a takeover battle. Qualcomm officially rejected the initial bid today, which was for $105 billion (it was originally reported to be around $130 billion).

Qualcomm's Snapdragon mobile processors are widely used in the smartphones around the world.

On Friday, Qualcomm shares concluded at $64.57, while Broadcom finished at $264.96.

This is just not how these big acquisitions work, usually, these companies sit together, work for a while and try to negotiate important details and then go to the public. Tell us down in the comments.

Other reports by PlayStation Move reviews

Discuss This Article