gpolit.com
gpolit.com November 21, 2017


Qualcomm Spurns $130B Broadcom Takeover Bid As Too Low

14 November 2017, 12:41 | Camille Rivera

Qualcomm to Discard Broadcom's Bid

FSMNews

The board meeting's preparations show that Qualcomm is set to reject the bid as inadequate as early as Monday, although it may extend to a few more days to ready its full response to Broadcom, the sources added. In the statement, Qualcomm Chief Executive Paul Jacobs said Broadcom's unsolicited bid is simply not enough for Qualcomm to accept.

Qualcomm's board believes that Broadcom's proposal significantly undervalues Qualcomm given its leadership position in mobile technology and their future growth opportunity.

Broadcom "remains fully committed" to the acquisition and said in its own statement that combining the two companies would create "a strong, global company with an impressive portfolio of industry-leading technologies and products".

"No company is better positioned in mobile, IoT (internet of things), automotive, edge computing and networking within the semiconductor industry", he said.

This comes shortly after Qualcomm filed another lawsuit against its main chip purchaser, Apple, claiming that it broke a confidentiality clause found in its contract. "We are highly confident that the strategy Steve and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer", said Tom Horton, Presiding Director for Qualcomm Incorporated.

Broadcom's bid last week represented a 28 percent premium over the closing price of Qualcomm shares on November 2, but analysts were expecting Qualcomm to reject the $70-per-share bid.

Broadcomm, however, says it will stick with the touted package that, including debt relief and other terms, would see the biz spend $130bn in total.

Overall, Broadcom's bid is a very ambitious attempt to grow its share of the market for components that go into mobile phones.

Broadcom shares are now up 0.3% on the day; Qualcomm is up 1.8%, at session highs.

The company's decision to decline what would be the biggest-ever tech deal simply opens the door for the inevitable proxy battle that will ultimately decide the fate of the chipmaker. Let us know in the comment section below.



Other News

Trending Now

Here's How Doom Runs on Nintendo Switch
With Hulu now on the Switch you have to imagine Netflix, Amazon, and the rest of the streaming pack won't be far behind. The download is free, but users will need to have a Hulu subscription in order to access content.

Trump says he will never call N Korea leader 'short and fat'
North Korea is not known to have tested any of its missiles or nuclear devices since September 15, after a brisk series of tests earlier this year .

Gonzaga athletics shares top spot nationally in graduation rate
Six teams have a 100 percent GSR: men's fencing, rifle, pistol, men's volleyball, women's tennis and women's volleyball. To calculate GSR, the NCAA considers whether athletes graduate within six years of entering a program.

Disneyland shuts down cooling towers over Legionnaires' cases
Most cases of the infection start when people inhale microscopic water droplets containing legionella bacteria. The bacteria commonly is found in water systems and poses no threat to humans at low levels.

Why We Think EA Bought Titanfall Developer Respawn
Despite EA's shaky track record when it comes to buying and maintaining game studios, Respawn is excited about what the future holds.

New Investigation Shows TSA Screenings Often Don't Spot Banned Objects
Twitter users questioned whether airports should still use TSA and lamented the security process. Eight undisclosed recommendations have been made to TSA to improve checkpoint security.

Ezekiel Elliott Ineligible to Play Sunday After Losing Appeal
But as of this moment, Elliott will not be allowed to play in the 5-3 Cowboys' game against the Falcons on Sunday. Elliott denied the allegations under oath during his National Football League appeal.

OnePlus 5T Leaks Ahead of Launch, and It Looks Great
The phone would also come up with a dual rear camera setup which is a trend nowadays on most of the latest high-end smartphones. Among other details, the leak reveals that the OnePlus 5T will come with Apple iPhone X like FaceID to unlock the smartphone.

Chinese Shoppers Spent $25.3 Billion In 24 Hours, This Singles Day
Analysts have come forward to outline that it exceeds the combined sales for Cyber Monday and Black Friday in the United States. This was the eighth edition of the online shopping spree which had about 140,000 brands including 60,000 worldwide labels.

Russian Federation says it plans to retaliate against USA owned media in Moscow
The decision came in the wake of investigations into Kremlin attempts to interfere in the 2016 US presidential election. She said the demands contradicted both democracy and freedom of speech.