Broadcom today made a second offer to acquire rival Qualcomm.
Last year, the company offered $70 per share of Qualcomm’s stock. Qualcomm rejected that bid, saying it drastically undervalued the company. Today’s offer ups the financials to a total of $82 per share of Qualcomm stock. The new offer includes a greater mix of Broadcom stock, which Broadcom says gives Qualcomm shareholders a greater stake in the combined entity should the deal go through.
The company also offered to accept two directors from Qualcomm, including Paul Jacobs, onBroadcom’s board of directors, as well as pay a reverse termination fee should the deal not meet regulatory muster. Qualcomm acknowledged that it received Broadcom’s new offer, though it declined to comment on the specifics of the revised deal.
Qualcomm is already one of the world’s largest suppliers of chips. Merging the two would create a titanic company in the mobile radio space.
