Broadcom Bids $103 Billion for Qualcomm, Open to Going Hostile

Megalith

Megalith

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As hinted earlier, chipmaker Broadcom made an unsolicited $103 billion bid for Qualcomm on Monday, setting the stage for a takeover battle that could reshape the industry at the heart of mobile phone hardware. Qualcomm said it would review the proposal, but the San Diego-based company is inclined to reject the bid as too low and fraught with risk that regulators may reject it or take too long to approve it.

Broadcom Chief Executive Hock Tan would not rule out a proxy fight to convince shareholders to replace the board and accept the offer. A combined Broadcom-Qualcomm would become the dominant supplier of chips used in the 1.5 billion or so smartphones expected to be sold around the world this year. It would raise the stakes for Intel Corp, which has been diversifying from its stronghold in computers into smartphone technology by supplying modem chips to Apple.
 
Holy crap that's insane $103 billion. Someone whats to buy into the top spot in the market for sure....
 
I thought it was 130Billion not 103? It's gonna get nasty but if that means that we get better chips then I'm all for it.
 
Just no. Competition is good for the consumer and for inovation. Unfortunately, with the amount of money we're talking about here they've got millions to spare to buy the appropriate legislators.
 
Bigdady92 said:
I thought it was 130Billion not 103? It's gonna get nasty but if that means that we get better chips then I'm all for it.
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103B, current stock count is 1.47B shares @70 bucks a pop which comes out at ~103B

I also saw the 130B circulating but have no idea where that comes from (propably a typo). However I think this is an initial bid and I believe it'll be increased to between 75 and 80B in a hostile bid but that still puts it topping out at 116B.
 
sadsteve said:
Just no. Competition is good for the consumer and for inovation. Unfortunately, with the amount of money we're talking about here they've got millions to spare to buy the appropriate legislators.
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Not much of a competition between the two companies though, major overlap is WiFi chips.
 
eneq said:
103B, current stock count is 1.47B shares @70 bucks a pop which comes out at ~103B

I also saw the 130B circulating but have no idea where that comes from (propably a typo). However I think this is an initial bid and I believe it'll be increased to between 75 and 80B in a hostile bid but that still puts it topping out at 116B.
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The $130B number is the total value of the deal which includes $25B in QCOM debt that would transfer to AVGO.
 
DeeFrag said:
The $130B number is the total value of the deal which includes $25B in QCOM debt that would transfer to AVGO.
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Ah ofc. I assume this debt is incurred from the NXP aquisition and that ofcourse needs to be part of the package.
 
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