Qualcomm agrees to $2 billion deal with various Chinese OEM’s including Xiaomi, Oppo, and others
Qualcomm has been in the news over the last few months for all of the wrong reasons, as the company has seen a few struggles as of late. The latest of which was a $1.2 billion fine after it was discovered that the company paid Apple to “shun competitors” between 2011 and 2016.
However, it seems things are looking up for Qualcomm, at least for now, as the company held an event in Shanghai to make a rather important partnership. The chipset manufacturer announced a $2 billion agreement with the likes of Lenovo, Xiaomi, Oppo, ZTE, and other OEM’s to help facilitate the development of 5G network.
The deal also ushers in a new wave of hope for Qualcomm as each of the aforementioned companies have agreed to purchase an array of components over the next three years. While on the outside it may just look like Qualcomm will bring its Snapdragon lineup of chipsets to more devices, this also may be a big move to help sway shareholders from selling the company.
Back in November, we began hearing rumors of a potential suitor who was looking to purchase Qualcomm. These rumors were confirmed after Broadcom officially offered a staggering $130 billion bid, which was based on a valuation of $70 per share. Qualcomm quickly rejected the bid, doing so unceremoniously as the Board of Directors voted unanimously against the buyout.
A few weeks later, a report was revealed which claimed that Qualcomm wanted Broadcom to return to the table with a new offer, which would be worth $80 per share. Since then, we have seen Qualcomm introduce its latest chipset, the Snapdragon 845, which will be at the helm of many flagships in 2018.
Furthermore, Qualcomm has been in a legal battle with Apple due to battery patent infringement, a case which has yet to be settled. While we haven’t heard much from the possible Broadcom acquisition, chances are that Qualcomm is working to pull out all of the stops to show just how much the company is worth, and this latest deal is sure to assist in that attempt.