nsucurrent.com
nsucurrent.com December 11, 2017


Qualcomm rejects Broadcom's $103-billion takeover bid

16 November 2017, 02:06 | Colleen Roy

Qualcomm rejects Broadcom's $70 per share takeover offer

Qualcomm will reportedly turn down Broadcom's $100 billion offer

(QCOM) announced that its board rejected Broadcom's buyout Proposal saying that proposal significantly undervalues Qualcomm relative to the Company's leadership position in mobile technology and future growth prospects.

Qualcomm's board of directors could meet as early as Sunday to review the unsolicited acquisition offer and decide on its strategy, the sources said.

Fellow chipmaker Broadcom had offered $60 in cash and $10 in stock for each Qualcomm share, a transaction valued at $105 billion.

Qualcomm CEO Steve Mollenkopf added that the United States chip maker has a future in mobile, the Internet of Things (IoT), edge computing and networking within the semiconductor industry, and the firm has no doubt of future growth in these areas. "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".

If Broadcom makes a hostile bid, Qualcomm's governance rules would allow the rival to submit its own slate for the entire 11-member board by the December 8 nomination deadline.




"We are well-advised and know what our options are, and we have not eliminated any of those options", Broadcom Chief Executive Hock Tan told Reuters last week.

It's interesting to note that Qualcomm didn't just come out and say, "we're not for sale".

"For a company like Broadcom, Qualcomm's modem leadership completes the wireless picture", he noted in a statement. Yes, of course. But, it will take a huge R&D budget and multiple years to get customer acceptance and Broadcom's lack of experience in 4G basebands further complicates the process as backward compatibility is a key requirement for network operators.

NXP shares have been trading above Qualcomm's offer price, as many NXP shareholders, including hedge fund Elliott Management Corp, have been holding out for a better price.

The combined revenue of the three firms in question - Qualcomm, Broadcom and NXP - is expected to touch $51 billion in FY 2017 with EBIDTA of aroud $23 billion, forecasts the semiconductor fiem, justifying its proposal.



Other News

Trending Now

Moore threatens lawsuit over story that threatens campaign
He threatened to sue the Post over the weekend and said the allegations were a smear campaign by his political opponents. Walker was asked in the Sunday interview if Moore should bow out of the race in the light of the allegations.

At least one person dead, 50 wounded in Iraq after natural disaster
But the governor of Qasr-e Shirin, Faramarz Akbari, said only two people had died in the town and 25 others were injured. Deputy Prime Minister Recep Akda─č said no destruction or damage occurred in Turkey from magnitude the natural disaster .

Black Friday 2017: Sales are starting earlier
The holiday shopping season, which runs through Christmas on December 25, can account for as much as 40 percent of retailers' annual sales.

Trump sarcastically responds to Kim Jong Un insults
Asked if he could see himself being friends with Kim, Trump said: "That might be a unusual thing to happen but it's a possibility".

The Bush Family Is Using the Trump Era to Attempt a Rebrand
It is rare in the modern political era to see former presidents to openly criticize their successors. Bush made during the last 2016, when he said he fears that he will be the last GOP president.

Boat capsizes in Vijayawada, 16 dead, 10 Missing
Thirteen people lost their lives when their boat capsized in the Krishna river on Sunday evening. The National Disaster Relief Force (NDRF ) are undertaking search and rescue operations.

At Least 5 People Dead After Northern California Shooting
Some students at the school were medically evacuated; it's not clear yet how many people were injured in the shooting. A person with the username Javier Figueroa tweeted that the shooting had taken place at his brother's school.

Gay Talese tells Kevin Spacey's alleged victims to "suck it up"
Unruh is planning to hold a news conference with attorney Mitchell Garabedian in Boston at 11.30am to discuss her claims. At the end of the night, an inebriated Spacey picked him up, placed him on his bed and climbed on top of him, Rapp said.

Humvee maker sues Activision over trademark infringement in Call of Duty
So what Call of Duty: WWII has really achieved, I think, is returning the franchise to the level of prestige it previously enjoyed.

New 2018 iPad Pro concept imagines Face ID & bezel-less design
According to the report, the screen size will be similar to the 10.5-inch iPad Pro released this spring. The iPad had been Apple's second-largest product line as recently as 2015.