Acquire Qualcomm for Doller One Hundred & Three billion offered by Broadcom
Acquire Qualcomm for Doller One Hundred & Three billion offered by Broadcom. Broadcom’s offer comes amid a legal battle between Qualcomm and Apple. The chipmaker company could lose one of its biggest customers in a unit that earns most of its revenue.
Broadcom CEO Hock Tan was at the White House on Thursday to announce the company’s relocation to the US from Singapore. That move means the deal would bypass oversight from the regulator that scrutinizes deals between American and foreign companies, but the Department of Justice is still likely to raise antitrust concerns.
Broadcom has proposed to buy this offer in a semiconductor deal that would be the largest-ever takeover in tech.
In a statement Monday, Broadcom said it offered $60 in cash and $10 a share in Broadcom shares. The offer represents a 28% premium to closing price of $54.85 on Thursday, before initial reports of deal talks sent Qualcomm shares up 12% on Friday. It was valued at about $130 billion on a pro forma basis, including $25 billion of net debt.
A deal would make Broadcom the third-largest maker of chips and other components that go into smart phones behind Intel and Samsung, according to Bloomberg. Broadcom’s bid comes amid a global legal battle between Qualcomm and Apple that could cost the semiconductor company one of its largest customers. Apple is disputing Qualcomm’s practice of charging a share of the total price of iPhones and other Apple devices as a licensing fee for its patents.