Broadcom Formally Drops $117B Qualcomm Bid
Broadcom formally dropped its $117 billion bid for Qualcomm this Wednesday morning, after President Trump issued an order blocking the acquisition on "national security" grounds on Monday.
In a statement, Broadcom said that it is "disappointed with the outcome," but will comply with the government order. This ends a turbulent episode for Broadcom, which first made an unsolicited bid of $105 billion on November 11, 2017 for Qualcomm. If the takeover bid had succeeded, it would have represented the largest tech acquisition ever. (See Broadcom Offers $130B for Hostile Takeover of Qualcomm and Qualcomm Rejects $105B Bid From Broadcom.)
Broadcom raised its bid to $121 billion on February 5, and then lowered it again to $117 billion on February 21. Qualcomm, however, consistently rejected the offers, saying they "undervalued" the company, although the companies started talking near the end of the four-month process. (See Broadcom Raises Offer for Qualcomm to $121B and Broadcom Drops Offer for Qualcomm to $117B.)
The US Treasury's Committee on Foreign Investment in the US (CFIUS) started an investigation into the Broadcom bid on security concerns in early March. Broadcom, however, kept trying, saying on Monday, March 12 that it would move its headquarters back to the US by April 3. (See Feds Want Full Investigation Into Broadcom's Qualcomm Bid and Broadcom Speeds US Return to Strengthen Qualcomm Bid.)
President Trump, however, issued the order blocking the acquisition on Monday night. (See Trump Blocks Broadcom's Qualcomm Acquisition .)
Broadcom said in its statement Monday that it was still planning to "redomicile" in the US.
— Dan Jones, Mobile Editor, Light Reading