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On Friday, a report from Bloomberg surfaced which suggested that Broadcom was considering a buyout offer of $100 billion for Qualcomm. Unlike the T-Mobile/Sprint saga, the reports have stopped as Broadcom has made the offer official.
The specifics of the offer include a bid to purchase Qualcomm for $130 billion which works out to a $70 per share valuation, but there may be a bit of a roadblock. Qualcomm is said to be recommending that its shareholders reject the offer stating that the purchase would get held up by regulators. If it were to go through today, shareholders would receive a 30% premium over the current stock prices.
This may seem like a deal coming out of left field, but the last few months have not been kind to Qualcomm. The wireless chip maker has seen various anti-trust violations, resulting in various fines. In fact, Qualcomm has filed a lawsuit against Apple in an attempt to ban sales of the iPhone in China over technology patents.
This whole situation could get rather messy, so we’ll have to see if Qualcomm swallows its pride and takes the deal, or if Broadcom is left to continue trying to find ways to dominate the market. Nonetheless, this is definitely something to keep an eye on, and we’ll be sure to let you know if there are any updates.
[Engadget | PR Newswire]
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