Broadcom has retrained its sights on Qualcomm following its rejected $105 billion bid in November. Broadcom today announced a new offfer as part of a renewed push that would be worth more than $120 billion if accepted.
According to the details of the offer, Broadcom would pay Qualcomm $82 per share, made up of $60 in cash and the rest in Broadcom shares. Broadcom refers to this as its "best and final offer," stating that it represents a 50 percent premium over Qualcomm's closing price on November 2, referring to that point as "the last unaffected trading day prior to media speculation regarding a potential transaction."
Under the terms of its offer, Broadcom would pay Qualcomm a "significant" fee if the deal were unable to garner regulatory approval. Broadcom would also pay Qualcomm addition fees if the deal isn't finished within a one-year window.
As with its previous offer, the deal would represent the largest in tech history if it were to be approved. The combination of Broadcom and Qualcomm would also create a giant among chipmakers. Both companies already have significant standing in the smartphone market, in particular. Qualcomm has chips and components present in nearly every smartphone on the market, and Broadcom already commands a major share of Wi-Fi chipsets on the market. The combination of both companies is an interesting proposition, but it also raises major concerns.
However, the offer hinges on acceptance by Qualcomm, which has already rejected one unsolicited offer from Broadcom. "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," Paul Jacobs, executive chairman and chairman of the board of Qualcomm, stated at the time. "No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry," Qualcomm CEO Steve Mollenkopf added.
It's unclear how Qualcomm might respond this time, but this latest bid comes amidst increasing pressure on Qualcomm's board. The company's annual shareholder meeting is set for March 6, and Broadcom has already made known its plans to nominate board members who are friendly to its takeover ambitions.
Dan Thorp-Lancaster is the Editor in Chief for Windows Central. He began working with Windows Central as a news writer in 2014 and is obsessed with tech of all sorts. You can follow Dan on Twitter @DthorpL and Instagram @heyitsdtl. Got a hot tip? Send it to firstname.lastname@example.org.
Are there any benefits to a takeover by Broadcom?
Naaa we already know how change in leadership might scrap all current projects, bring in thier own ideas or in short "hit refresh"
I kind of hope Qualcomm denies. Broadcom are being real pushy. They keep sending me mail trying to get me to vote for their board members.
When will Broadcom learn, being a bully never pays. For Karma works in very, very mysterious ways.
Broadcom already has the Raspberry PI, people are using this for IoT, it does not have a good video or cellular solution, Qualcomm would solve this. Qualcomm is about to be come the first always "ON" Windows 10 ARM based platform, that's a lot of chips.
Yes and if windows 10 on ARM really takes off, the value of Qualcomm could potentially be way higher than $120billion.
I hope Qualcomm doesn't get bought they have future state vision. What noticeable future state innovations have Broadcom brought to the market? I don't recall anything significant. If Qualcomm got bought then i feel all the cool stuff they have planned for the future would just go to the wayside and we wouldn't continue our trend on innovation in the mobile tech space.
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