News Worms
News Worms


Broadcom offers to buy Qualcomm in $130 billion deal

Broadcom offers to buy Qualcomm in $130 billion deal

Broadcom has reportedly made an unsolicited offer to buy Qualcomm in a deal valued at $130 billion, which, if it succeeds, would be the largest acquisition in tech history. However, according to the FT, Qualcomm is set to reject the deal, raising the prospect of a fight for the future of the company.

"We believe the combination could create shareholder value through potential accretion, synergies, increased share with Apple and Samsung; in addition, Broadcom could potentially settle the licensing dispute with Apple in a more-timely manner than could Qualcomm, given Broadcom's strong relationship with Apple".

Both companies now supply Apple with wireless chips and patent licenses, and the deal would make Broadcom the world's third-largest chipmaker after Intel and Samsung. As a result of all that, its stock has fallen steeply, making it a much better bargain than it was just a year ago - Broadcomm's offer now represents a 30 percent premium over the current stock price.

A Qualcomm spokesman contacted by TechCrunch declined to comment on Broadcomm's proposal at this time. Here's a wrap of what they've said so far.

Hock Tan, president and CEO of Broadcom, said in a statement: "This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products".

Qualcomm's chips and patents affect nearly every smartphone model in the world, and Broadcom is offering $70 a share, which is a 28pc premium on Qualcomm's closing stock price last Thursday (2 November) according to a report in The New York Times.

We would not make this offer if we were not confident that our common global customers would embrace the proposed combination.

The bid comes as Broadcom plans to move its headquarters to the United States from Singapore.

follow

editors' picks

November 07, 2017
Rafael Nadal pulls out of Paris Masters citing knee injury
Both players exchanged breaks early in the first set, but Nadal managed to carve out a 4-2 lead. I do not see myself playing three more matches.

November 07, 2017
Axed David Luiz watches Chelsea win from stands
The Italian gaffer added: "I decided this tonight, maybe I can decide a different way in the future. I must take the best decision for the club, not for a single player.

November 06, 2017
Australia refuses New Zealand offer on refugees
Australia withdrew from the Manus Island centre on Tuesday, following a PNG court ruling that the centre was unconstitutional. She said the circumstances had changed since the last time the offer was made - by English in February.

November 06, 2017
Rose Namajunas Tired of Trash Talking, Wants to Set New Example
On trying to be a positive role model: "Just with the rest of the world, I think there's a lot of negativity everywhere you look". Joanna had been very vocal in the build up to the fight and her trash talk in the direction of her opponent was relentless.

November 06, 2017
Watch Larry David's pretty amusing 'SNL' monologue about the Holocaust
They treating you OK? Saturday Night Live has done some weird rap parodies in the past, but this one really takes the cake, or rather, the baby bottle.

November 06, 2017
TJ Dillashaw KO's Cody Garbrandt to win UFC Bantamweight Title
I was fighting number one contenders. "I'm getting that belt at 125". "Demetrious Johnson - I'm coming for you", Dillashaw added. Both fighters came out swinging with bad intentions from the get-go as a fire-fight ensued in the opening round.

November 06, 2017
ISIS strongholds in Syria fall to government forces
The Syrian army and Kurdish-led forces supported by the United States are in a race to retake the rest of the eastern province. The IS group is also losing ground to the Syrian army, which captured recently the entire capital city of Deir al-Zour.

November 06, 2017
Trump, Putin to meet and discuss North Korea
The two passed up the region's famed Kobe beef in favor of the American version, which is favored by Trump, a famed picky eater. Mr Abe told reporters after the golf session that the two could talk frankly in a relaxed atmosphere while out on the course.

November 06, 2017
Democrats demand that Sessions explain his meeting with Papadopoulos
Lindsey Graham, R-S.C. "The March 31 comments by this Papadopoulos person did not leave a lasting impression", the person said . At the time of that article, a spokeswoman for Sessions declined to comment.

November 06, 2017
Tottenham 1-0 Crystal Palace: Spurs stars rated and slated
Palace looked the more likely to break the deadlock at the start of the second half and should have taken the lead. Palace were compact, narrow and played on the counter attack.