Qualcomm Officially Rejects Broadcom’s $103 Billion Acquisition Bid
Last week, Broadcom made the unsolicited $103 billion offer that would have been the largest tech merger in history. Qualcomm’s leaders believe the company is well positioned to “lead the transition to 5G” — which is true, provided Qualcomm can square away its legal dispute with Apple and maintain its dominance over the Android processor market.
“After a comprehensive review, conducted in consultation with our financial and legal advisors, the Board has concluded that Broadcom’s proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty,” Qualcomm’s Presiding Director Tom Horton said in a statement.
Broadcom’s offer was for $70 a share – valuing Qualcomm at just north of $100 billion dollars (the deal would include $25 billion of debt).
Qualcomm provides chips to carrier networks to deliver broadband and mobile data. It is engaged in a patent infringement dispute with Apple, and is also trying to close its $38 billion acquisition of automotive chipmaker NXP Semiconductors after signing a deal in October 2016. Both companies manufacture complementary smartphone components and a merger would represent a significant consolidation in the electronics industry.