Broadcom tenders massive $105 billion acquisition offer to Qualcomm

Following recently surfaced rumors that such a proposal was in the works, Broadcom formally announced an offer to acquire Qualcomm for a whopping $105 billion. The deal would see Broadcom offering a price of $70 a share in cash and stock, with a total transaction value of around $130 billion on a pro forma basis, including $25 billion of net debt, Broadcom says.

If the deal were to be accepted and approved, the acquisition would be the largest takeover of a chip manufacturer ever. Moreover, the combined heft of Qualcomm and Broadcom would create an absolute giant among chip makers, particularly in the smartphone space. Qualcomm's modems are already present in nearly every smartphone on the market, and Broadcom already commands a major share of Wi-Fi chipsets on the market.

That said, this is an unsolicited proposal from Broadcom, so it's unlikely we'll see Qualcomm jump at the offer. Qualcomm could negotiate for a higher price, or reject the offer outright. Still, the timing of the offer is interesting, as it comes amidst legal disputes between Qualcomm and Apple that have only continued to heat up over the course of 2017. Qualcomm is also currently working closely with Microsoft on the upcoming Windows 10 on ARM.

Dan Thorp-Lancaster

Dan Thorp-Lancaster is the former Editor-in-Chief of Windows Central. He began working with Windows Central, Android Central, and iMore as a news writer in 2014 and is obsessed with tech of all sorts. You can follow Dan on Twitter @DthorpL and Instagram @heyitsdtl

  • Thought it's $130B.
  • I think its 130B with debts included.
  • That's insane! ... o_0
  • Will this boost our stock in Qualcomm if they take the offer?
  • 1. Intel and AMD Team Up 2. Broadcom acquires Qualcomm   What else going to happen now?
  • iMessaging on Windows 10 I hope.
  • :P
  • Hahahaha ^This
  • Apple starts selling current tech
  • What's next, cats living with dogs?
  • Sony releasing PS VR game for Windows Mixed Reality?
  • I think so -
  • Broadcom purchase Qualcomm and kill windows on arm........yup, that could happen. If the new CEO doesn't see instant value in the project he'll kill it. He's going to be under huge pressure to rebalance the company books and will point the company toward the quick money. Look at what Nadella did to Windows Mobile. Look at what Intel did with it's mobile processor plans. If these firms can't see quick returns they kill projects. If I were Microsoft I'd be nervous about this merger and what it could mean for windows on arm.   
  • Yes, $130 billion merger, I don't think one marginal device category is really on anyone's radar. It's irrelevant.
  • You misspelled "look what a board of directors and the greedy investors they represent did" as Nadella and Intel.  
  • I see my thoughts have garnered a couple of thumbs downs, which is fair enough, but I think Microsoft should be worried about a merger like this. It could put a major spanner in thier plans. Let's be clear, if this merger happens the CEO is likely going to do one of three things: 1. Get totally buzzed on the idea that windows on arm is the next huge thing and push eveything he has at it in order ot make it the best computing experience on the planet. 2. Play the short game...leave the project to run its course and see how the market responds to windows on arm machines when they launch in the next few months. If it does well, great. If not, kill it. 3. Has horror visions of burning platforms, microsoft abandoning consumers without a moments notice, surface and dell phones that would rely on intel atom technology not appearing in the market, $billion surface stock write downs, surface minis being pulled weeks before launch, services being cancelled, etc, etc and decide he's not going to be the next victim of a Microsoft u-turn. Pulls development and focusses on making nice with Apple. This is not an inconceivable outcome.
  • This is nothing but panicky, unjustified, unnecessary, irrelevant, and irresponsible speculation..... Just stop. Lol
  • Irresponsible? What are you talking about? It's an observation about how one company may react to another comany being aquired. Unless you have a major stock portfolio in these companies or you happen to work for one of them then it's nothing more than my observations. And yes, Microsoft have a habit of u-turning on products and tech comanie have a habit of cancelling developments during mergers and aquisitions. lol
  • Dude, at this point there's nothing to observe.. There's no indication at all, or evidence, that anything will randomly affect WOA... There's nothing but dreamt up ideas about nothing in your head.
    Your totally unsupported "speculation" has zero basis.
  • Well said Jcmg62 what you just said is possible but a massive acquisition like that takes time to happen: first by shareholders and second by the government and antitrust authorities amd following your thinking in case of future bad news for WoA, the time for approvals that I mentioned earlier is the time to finish the project. Fingers crossed here to see WoA in a device nearby me sometime soon ....
  • in WindowsCentral if you write something against the Microsoft you always get down voted ! Here people are so biased that even though they know Microsoft is not doing well they want to stick with it (Most of them lost their money on WM, but still supports Microsoft as if Microsoft is owned by their family :-).) But what you said is totally logical !
  • Your comment doesn't make any sense.
    WOA is Microsoft's project. MS is working with Qualcomm, but if Qualcomm decided they wanted out MS would just go with another chip manufacturer.
  • And, Windows market share is already proven.. No company would be dumb enough not to try to get their components inside PC'S,, less known that try not to... WOA is a huge blessing for Qualcomm. There's no way they wouldn't want to support MS's PC efforts,, just because they failed at smartphones. That's irrelevant, and seriously the small picture.
  • WOA is a blessing for Qualcomm, I'm not denying that, and I'm sure they'd like this to succeed, but lets look at this from a completely neutral view point......there is a chance that a new management team at Broadcom/Qualcomm wouldn't see as much value in WOA as they would in other projects.   All I'm saying is that it's conceivable that a new leadership team could ditch plans that are well into the development cycle. We've seen Microsoft do it with thier own hardware, software and services. Microsoft were banking heavily on Intel developing thier Atom chipset and it completely blew thier plans when Intel killed that line. Microsoft don't have control over thier partners.  And when a partner goes through a massive merger it's conceivable that exisitng plans may be delayed or cancelled while new leaders decide on a new direction. It's conceivable and Microsoft should be concerned
  • Who ever said their would be a new management team?
    See. Nothing.... Even if your non issue saw the light of day Qualcomm isn't the only manufacturer of ARM chips. It's just a waste of time bringing up nothing.
  • Hey!! Tomorrow Satya Nadella is headed to San Francisco.. His plane might crash then Microsoft will be left without a CEO.. 😲😲😲😲😲😲😲😲😲😲😲😲😲😲😲😲😲😲😲😲😲😲😲😲😲😲😲
    Oh no!!!!.... Let's randomly take that into consideration!
  • What other chip manufacturer? Seriously, do you even have a base understanding of this stuff? It's taken years of development for Microsoft to get windows to run on arm architecture. You don't just show up at Acme chips head office one day with an OS on a disc and say to reception "hey, can you stick this software on a chip for me please...."  
  • Have you lost your mind?
  • I think you make good points, not sure why Rodney is going out of his way to dismiss them.
  • If Qualcomm kills WOA, Microsoft should develop their own processors. Apple has A1-12, Samsung has Exynos, Huawei has Kirin... Microsoft can build sth too. They could even supply their partners with Microsoft-branded processors. Easier to say than do, of course. Just an alternative idea, a contingency plan. Perhaps Panos is already testing the new processor in the lab?! No one knows....
  • That would be a very good idea. I think Microsoft should try to be as independent as possible when it comes to manufacturing new surface products.