Broadcom Wants to Kill Qualcomm's Licensing Business – Report

If Broadcom can get Qualcomm shareholders to accept its $103 billion bid for the wireless chip giant, it reportedly plans to kill off the CDMA pioneer's fabled patent licensing business.

One of the latest twists in Broadcom Corp. (Nasdaq: BRCM)'s hostile bid for Qualcomm Inc. (Nasdaq: QCOM) is that Broadcom plans to phase out Qualcomm's licensing business if it wins shareholders over, according to sources cited by Bloomberg.

Qualcomm recently announced it would offer 5G licensing at an "effective running royalty rate of 3.25% of the selling price of branded multi-mode (3G/4G/5G) handsets." Broadcom would instead offer per-unit chip pricing.

This would be good news for Apple Inc. (Nasdaq: AAPL), which is currently in a legal battle with Qualcomm over its patent-based licensing fees. (See Qualcomm Pooh-Poohs Apple Lawsuits.)

The Broadcom-Qualcomm spat will be decided at Qualcomm's shareholder meeting on March 6. (See Broadcom & Qualcomm: Let's Get Ready to Proxy!.)

— Dan Jones, Mobile Editor, Light Reading

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