Broadcom today made an unsolicited offer to buy Qualcomm for $70 per share, a deal valued at approximately $130 billion.
According to Broadcom, the merged entity would be a diverse communications semiconductor company that would be able to accelerate innovation, deliver more advanced products, and create compelling financial savings/efficiencies. Broadcom believes its own portfolio of chips differs enough from Qualcomm’s that the two could form a better global competitor. Broadcom said it will pursue Qualcomm whether or not the latter is able to successfully close its in-progress acquisition of NXP.
Broadcom plans to move its international headquarters from Singapore to the U.S. in order to facilitate the acquisition and manage the joint entity moving forward. The deal is subject to board agreements, shareholder approval, and government scrutiny. Making an unsolicited offer for a public company effectively puts the target company up for sale, opening up the process to rival bids from other companies.
Qualcomm’s board said it
“will assess the proposal in order to pursue the course of action that is in the best interests of Qualcomm shareholders.”
Qualcomm can accept or reject Broadcom’s offer, but its board officers are legally bound to find the best deal.
