BROADCOM IS REPORTEDLY upping its offer for chipmaker Qualcomm to $145bn after its previous bids were rejected.
The Snapdragon chipmaker has thus far refused buy-out offers from the rival wireless chip giant, turning down a $130bn bid. But like those creepy blokes you hear about on the internet, Broadcom doesn’t like the word ‘no’.
The firm has ramped up its offer to buy Qualcomm at somewhere between $80 and $82 a share, according to Reuters.
Previously, it had offered Qualcomm a mere $70 per share, which the chipmaker soundly dismisses claiming it “undervalues” Qualcomm and its “leadership position in mobile technology” as well as prospects for future growth.
“No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry. We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G,” stated Qualcomm’s chief executive Steve Mollenkopf, as the firm “unanimously” rejected Broadcom’s “unsolicited” proposal.
Yeah, Broadcom is not smelling like roses in this situation. And trying to buy a rival rather than beat it in the market could be seen as a coward’s play. Buy hey ho, such is the corporate world.
Still, boosting its offer by up to $12 a share dramatically increases the amount of cash Broadcom is willing to pay for Qualcomm. Given the original offer was already set to break tech acquisition records, Qualcomm may find Broadcom is making it an offer it can’t refuse… easily.
Combined, the two firms with all their wireless chip tech would dominate that part of the mobile hardware world, which would likely set monopoly regulators into a tizz.
The flip side to that is the combination of technologies and resources could see the move to 5G take up a proper pace rather than mozy around in tech conferences and just-round-the-corner promises.
But Qualcomm is doing pretty well at the moment, what with its sticking its chips into pretty much every Android flagship phone under the sun. So it has no reason to allow itself to be gobbled up by Broadcom.
That being said, Broadcom looks pretty damn keep on snapping up the Snapdragon giant, so we expect it’ll throw a few more offers Qualcomm’s way before it gives up. µ
Source : Inquirer