& cplSiteName &

Qualcomm Rejects $105B Bid From Broadcom

Dan Jones
11/13/2017
50%
50%

Qualcomm's board said Monday morning that it has unanimously rejected Broadcom's $105 billion hostile takeover bid.

Last Monday, Broadcom Corp. (Nasdaq: BRCM) launched an unsolicited $105 billion cash and stock bid to take over its wireless rival (a deal valued at $130 billion once Qualcomm's debt is take into account). The bid is the largest ever seen in the tech world, dwarfing Dell's $67 billion takover of EMC in 2015. (See Broadcom Offers $130B for Hostile Takeover of Qualcomm and Dell-EMC-VMware Merger Could Push Comms to Kids' Table.)

"It is the Board's unanimous belief that Broadcom’s proposal significantly undervalues Qualcomm relative to the Company's leadership position in mobile technology and our future growth prospects," said Paul Jacobs, executive chairman of Qualcomm Inc. (Nasdaq: QCOM), in a statement.

Qualcomm cites everything from its 5G evolution, to its silicon position in networking, IoT, mobile edge, and more, for confidence in its future growth. The chipmaker reported better than expected $5.96 billion revenue for its fiscal fourth quarter on November 1, despite a continuing legal battle with Apple Inc. (Nasdaq: AAPL) over cellular chip payments. (See Apple Trying to Drop Qualcomm – Report.)

Qualcomm is saying that the "proposal is not in the best interests of shareholders," ahead of a likely proxy battle, where Broadcom would try to appeal directly to Qualcomm investors. Bloomberg reports that Broadcom CEO Hock Tan was ready for this even before the bid was rebuffed.

This could also mean a higher offer from Broadcom to encourage Qualcomm shareholders. The company, however, hasn't yet responded to Qualcomm's rejection of its bid.

Broadcom's stock was trading down 0.52% at $263.58 on the news, while Qualcomm's share price edged up 1.3% to $65.41 in Monday morning trading.

— Dan Jones, Mobile Editor, Light Reading

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
11/28/2017 | 11:37:51 AM
Re: Even more than $105B?
It would be expected that the giant bid may rise, meanwhile it will be interesting to watch how shareholders and buyers of Qualcomm stock react to the continuing news, probably moving it up a bit.
Craig Matsumoto
50%
50%
Craig Matsumoto,
User Rank: Light Sabre
11/22/2017 | 5:11:27 PM
Even more than $105B?
Broadcom might up its bid for Qualcomm, Reuters is reporting this afternoon:

https://www.reuters.com/article/us-qualcomm-m-a-broadcom/broadcom-considering-sweetened-qualcomm-bid-sources-idUSKBN1DM2NX

Broadcom is 1) open to launching a takeover battle and 2) indifferent to whether Qualcomm's acquisition of NXP comes through. Keep the popcorn handy.
DanJones
50%
50%
DanJones,
User Rank: Blogger
11/13/2017 | 2:20:05 PM
What's Next?
What's next? Broadcom raising its bid some? Other bids from rival companies?

 
Featured Video
From The Founder
Light Reading founder Steve Saunders talks with VMware's Shekar Ayyar, who explains why cloud architectures are becoming more distributed, what that means for workloads, and why telcos can still be significant cloud services players.
Flash Poll
Upcoming Live Events
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
I'm Back for the Future of Communications
Phil Harvey, US News Editor, 4/20/2018
Verizon: Lack of Interoperability, Consistency Slows Automation
Carol Wilson, Editor-at-large, 4/18/2018
AT&T Exec Dishes That He's Not So Hot on Rival-Partner Comcast
Mari Silbey, Senior Editor, Cable/Video, 4/19/2018
Facebook Hearings Were the TIP of the Data Iceberg
Dan Jones, Mobile Editor, 4/20/2018
Pay-for-Play Is a Sticking Point in Congress
Mari Silbey, Senior Editor, Cable/Video, 4/18/2018
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed