Qualcomm board unanimously rejects Broadcom’s $130 billion bid

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. 

Comments closed
    • mcarson09
    • 2 years ago

    I’m not fond of Broadcom. They seem to take the Q out of Quality Control.

    • Jigar
    • 2 years ago

    Guess hostile take over might be the only option for Broadcom

    • Billstevens
    • 2 years ago

    Qualcomm is in the process of making some major pivots into the IoT sector and finally trying to branch away from purely mobile based tech into the broad market.

    If they were to accept any buy out offer it would be surprising as it would demonstrate a potential lack of confidence in the future road they are laying with all of their recent moves. 100 billion dollar companies with a good track record and a solid future business plan don’t typically yield control to a competitor.

    I could see them merging with broadcomm possibly down the road. That would effectively make them number 2 in the semiconductor business just under Intel, but with far better ties to ARM and the potential to outgrow Intel in the IoT space.

    However in the markets Qualcomm is entering everyone, size wise, short of Intel is on equal footing already.

    • ronch
    • 2 years ago

    Well, if this deal pushed through it surely would’ve sent my jaw to the floor. So yeah, I’m kinda glad it fell through and I still have my jaw.

      • tsk
      • 2 years ago

      Broadcom might cough up more money, so your jaw might still be on danger.

        • ronch
        • 2 years ago

        My jaw is safe, for now.

    • derFunkenstein
    • 2 years ago

    [url=https://techreport.com/news/32791/broadcom-proposes-to-take-over-qualcomm-for-130-billion?post=1058253<]Guess it wasn't[/url<].

      • chuckula
      • 2 years ago

      I sincerely hope you realized I was joking there.

      Incidentally, Qualcomm would have probably been sued by shareholders if they hadn’t voted to reject the offer. You always hold out for more $$.

        • derFunkenstein
        • 2 years ago

        I was linking to my own comment, not yours. It’s hard to tell since you can only scroll so far down the page.

Pin It on Pinterest

Share This