Broadcom Could Raise Its Blockbuster Bid For Qualcomm

Cesar Mills
November 14, 2017

Analysts expect Broadcom to raise its $105 billion bid that it made last week after Qualcomm said Monday that it had rejected the unsolicited $70 per-share offer. Given Broadcom's initial bid for Qualcomm combined with Qualcomm's Board of Directors rejecting the bid, we believe our base case scenario of $6.90 in C2019 pro-forma earnings (with NXP, with royalties from Huawei, and assuming Apple settles at a 50% discount to previous iPhone royalties) is a realistic outcome.

USA chipmaker Qualcomm Inc (QCOM.O) is making preparations to reject rival Broadcom Ltd's (AVGO.O) $103 billion bid as early as this week, four people familiar with the matter said on Sunday, setting the stage for one of the biggest-ever takeover battles.

Steve Mollenkopf, Qualcomm's chief executive, said the California company remains confident about its future.

Number of Reported Hate Crimes Surges in New Hampshire
The FBI's hate crime statistics lag by about a year and widely believed to underreport the extent of hate crimes in America. Meanwhile, 21% of crimes were motivated by religion and almost 18% by a victim's sexual orientation .

Some Apple iPhone X OLED screens plagued by green lines
I've also tried going to accessibility and turning on color filters color tint, but it doesn't help much. Might be different colors/sizes of iPhones that were affected.

Fidget spinners with harmful lead counts for kids sold at Target
Consumer Product Safety Commission ( CPSC ) guidelines because they were classified as "general use products" rather than toys. Cook-Schulz said it released the report on the lead content of these two spinners early because of public safety concerns.

This comes shortly after Qualcomm filed another lawsuit against its main chip purchaser, Apple, claiming that it broke a confidentiality clause found in its contract. Tom Horton, the company's Presiding Director of Qualcomm, Inc., also said that the uncertainty of the proposed acquisition also had something to do with the rejection.

Broadcom Ltd., also announced, in the company of President Donald Trump, that it would bring its corporate address back from Singapore, to Delaware.

QCOM shares traded as high as $80 just a few years ago, so it makes sense that the company wouldn't be ecstatic with a $70 takeover offer. Qualcomm has more, including the soon to finish NXP acquisition, a great patent portfolio, high-end phone SoC leadership, Modem and WiFi leadership in 4G and 5G and even automotive, the world's first 10nm server and Windows 10 holding great Snapdragon potential. Now we'll have to see if Broadcom returns with a bigger offer (though its initial proposal represented a 28% premium over Qualcomm's share price before Broadcom's plans were reported in the press) or simply gives up. Let us know in the comment section below. That's no small amount of money, and it would have ranked as the tech industry's largest acquisition ever.

Other reports by GizPress

Discuss This Article

FOLLOW OUR NEWSPAPER