Broadcom recently announced an offer to acquire Qualcomm in a deal that would have totaled around $130 billion in cash, stock, and debt. It doesn't appear Qualcomm was eager to accept the unsolicited offer, however, as the chip maker's board of directors has now unanimously rejected Broadcom's proposal.
Speaking about the board's decision, Paul Jacobs, executive chairman and chairman of the board of Qualcomm Incorporated stated:
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.
Qualcomm CEO Steve Mollenkopf commented further, stating that he believes Qualcomm is in a solid position within the semiconductor industry moving forward.
No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry. We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G
Had the deal gone through, it would have represented the largest takeover of a chip manufacturer ever. The combination of Qualcomm and Broadcom would create a giant among chip makers, particularly in the smartphone space, where it could have had a worrying impact on innovation. It's unknown how such a deal may have impacted Qualcomm's work with Microsoft on the upcoming Windows 10 on ARM, if at all.