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posted by martyb on Wednesday November 08 2017, @11:32AM   Printer-friendly
from the mixed-communications dept.

Broadcom Considering Unsolicited $105 Billion Bid to Acquire Qualcomm

Broadcom is deciding whether to proceed with the largest-ever attempted acquisition of a chipmaker:

Broadcom Ltd. is considering a bid of more than $100 billion for Qualcomm Inc., according to people familiar with the matter, in what would be the biggest-ever takeover of a chipmaker. Broadcom is speaking to advisers about the potential deal, said the people, who asked not to be identified because talks are private. The offer of about $70 a share would include cash and stock and is likely to be made in the coming days, the people said. A final decision on whether to proceed has not been made, they said.

[...] Qualcomm finds itself in a weakened state. A legal battle with Apple is costing revenue and jeopardizing a business model that for years made Qualcomm one of the most successful chipmakers. Before today, its shares had slumped 16 percent this year, compared with a 41 percent surge in the Philadelphia Semiconductor Index. A change of management at Qualcomm might help resolve the dispute with Apple more quickly, and thereby make Qualcomm's licensing and chip businesses more valuable, according to Sanford C. Bernstein & Co. analyst Stacy Rasgon. Earlier this week, Qualcomm executives said the legal process would "proceed under the court's schedule," indicating no resolution soon.

Qualcomm acquired NXP Semiconductors N.V. for $47 billion in 2016. Avago Technologies acquired Broadcom Corporation for $37 billion in 2015 and renamed itself to Broadcom Limited. Broadcom Limited recently announced that it would move its headquarters to the U.S. from Singapore.

Also at Reuters.

In a later article, Bloomberg reports:

In the new iPhone X, Qualcomm chips make it possible to connect with cellular networks, and Broadcom parts ensure the device can detect the cell signals while also enabling new wireless charging features. Also crammed in there are modules to handle mobile payments made by NXP Semiconductors NV, which Qualcomm is in the process of acquiring for $47 billion.

If everything goes as Broadcom plans, the three suppliers would all come together to create one of the world's largest chipmakers. A deal between Broadcom and Qualcomm would be the biggest ever in the technology business, concentrating immense power over the supply chain for smartphones that would ripple through the electronics industry.

Further, AnandTech reports:

One of the reasons why Broadcom is pursuing Qualcomm is because the latter's stock has been on a decline for several quarters now, whereas shares of Broadcom have been growing (so, inverstors may want to sell their Qualcomm shares). An important reason why Broadcom needs Qualcomm are cellular technologies of the latter. Broadcom clearly understands the importance of 5G and other current endeavors of Qualcomm, including server CPUs, SoCs for AR/VR, IoT and so on. Therefore, purchasing Qualcomm is a way to ensure a long term growth and relevance for Broadcom.

Previously: Broadcom Buys Network Gear Maker Brocade for $5.5 Billion
Qualcomm Files New Lawsuit Against Apple, Alleging it Shared Confidential Information with Intel

Broadcom moving legal headquarters back to the USA

Broadcom (AVGO:NASDAQ) has decided to move its legal headquarters from Singapore to the USA according to AP and Reuters. This brings $20 billion in annual revenue back into the USA. The company will increase spending for research and engineering in the USA.

Broadcom Ltd. is coming back to the USA!

"WASHINGTON – A $100 billion semiconductor company based in Singapore will legally relocate its home address to the United States, President Donald Trump announced Thursday.

Broadcom Limited, which manufactures communications chips around the world, said it would relocate its legal address to Delaware once shareholders approve the move, bringing $20 billion in annual revenue back to the U.S. The move will allow Broadcom to avoid a cumbersome federal review process." http://www.foxbusiness.com/features/2017/11/02/white-house-announces-companys-return-to-us.html


Original Submission #1Original Submission #2Original Submission #3

 
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  • (Score: 2) by richtopia on Wednesday November 08 2017, @04:33PM

    by richtopia (3160) on Wednesday November 08 2017, @04:33PM (#594117) Homepage Journal

    The only inaccuracy is that he didn't take credit for it.

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