Home / News & Analysis / Qualcomm Rejects Broadcom’s $105 Billion Offer

Qualcomm Rejects Broadcom’s $105 Billion Offer

Qualcomm has rejected Broadcom's $105 billion bid to buy the company, saying the proposal "significantly undervalues" the mobile chip maker.

On Monday, Qualcomm's board of directors unanimously turned down the offer, citing the chip maker's leading position in mobile tech and future growth prospects. "No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry," Qualcomm CEO Steve Mollenkopf said in a statement.

The board also cited "regulatory uncertainty." Broadcom and Qualcomm both develop Wi-Fi and Bluetooth chips, meaning a merger would likely draw antitrust scrutiny.

Related

Broadcom, however, said it remains "fully committed" to buying Qualcomm. "This transaction will create a strong, global company," Broadcom CEO Hock Tan said in a statement.

"We continue to believe our proposal represents the most attractive, value-enhancing alternative available to Qualcomm stockholders and we are encouraged by their reaction," Tan said. "Many have expressed to us their desire that Qualcomm meet with us to discuss our proposal. It remains our strong preference to engage cooperatively with Qualcomm's Board of Directors and management team."

Qualcomm has been locked in a costly legal battle with Apple over technology patents that's been creating doubts about Qualcomm's financial future. A Broadcom acquisition might be welcome relief for some Qualcomm stockholders. But analysts fear a merger might diminish competition in the smartphone industry, and kill innovation, paving the way for higher product prices.

Read more

Check Also

Watch HMD unveil Nokia phones live right here

HMD is holding a press conference at MWC in Barcelona to showcase some Nokia-branded phones. The conference starts at 4:00 PM CET (3:00 PM GMT, 10:00 AM EST). HMD licenses the Nokia brand so that the company can release smartphones under the Nokia brand. It isn’t the company we used to know and love, but it still says Nokia. So get ready for some new Nokia phones running Android. You… Read More

Leave a Reply

Your email address will not be published. Required fields are marked *

Disclaimer: Trading in bitcoins or other digital currencies carries a high level of risk and can result in the total loss of the invested capital. theonlinetech.org does not provide investment advice, but only reflects its own opinion. Please ensure that if you trade or invest in bitcoins or other digital currencies (for example, investing in cloud mining services) you fully understand the risks involved! Please also note that some external links are affiliate links.