Qualcomm announced this morning that it's officially rejecting Broadcom's unsolicited $130 billion takeover offer. Qualcomm's board of directors unanimously voted to turn down the bid, according to the company, citing a belief "that Broadcom's proposal signficantly undervalues Qualcomm relative to the Company's leadership position in mobile technology and our future growth prospects." Presiding director Thomas Horton additionally noted that the deal would burden the company with "significant regulatory uncertainty."
Although Broadcom could conceivably overcome one of Qualcomm's objections to its offer by sweetening its potentially record-breaking deal with further cash and other incentives, it's hard to see how the company could convince Qualcomm's apparently-skittish board that its deal would meet with easy regulatory approval in light of the telecoms monster that would emerge from the fusion of the two firms. We'll be curious to see whether Broadcom returns this volley or gives up its attempts to swallow up the Snapdragon maker.