Broadcom considers making better offer to buy Qualcomm

Business / Mobile
Broadcom

According to sources close to the matter, since its November 6th unveiling of its offer, Broadcom has made several attempts in requesting meetings with Qualcomm.

In a move to buy its rival Qualcomm, Broadcom is mulling over the idea of sweetening its buyout offer. The company will do so by offering more of its own stock, a decision which came after company officials talked to top Qualcomm shareholders. It’s also tightening its hold as the company threatens to replace its board of directors.

Hock Tan, Broadcom’s CEO, made a statement saying he’s open to launching a takeover. Sources have mentioned that the company is in preparations to submit a list of directors to Qualcomm before its December 8th deadline. Interested Qualcomm shareholders who want to move forward with the deal will then vote on that list in a shareholder meeting this March.

The current offer to buy Qualcomm from Broadcom comes in at $105 billion. The offer consisted of $60 cash per share and $10 per share of Broadcom’s stock, though Qualcomm rejected the offer. Adding more of its own stock will avoid the company’s credit rating from taking a hit. Broadcom will also avoid adding more debt in the transaction, although Qualcomm has mentioned expectations of at least $80 per share for the deal to move forward.

According to sources close to the matter, since its November 6th unveiling of its offer, Broadcom has made several attempts in requesting meetings with Qualcomm. Qualcomm has thus far denied such requests. The news of the offer has boosted Qualcomm’s shares as the rumors of Broadcom’s offering brought the stock up to $68.05 a share.

Qualcomm’s Snapdragon processors are synonymous with the mobile phone industry. Google’s flagship, the Pixel 2, houses a Snapdragon 835, as does the Galaxy S8 and a few other current flagships. The Snapdragon 845 is expected in December and is rumored to debut in Samsung’s Galaxy S9. The processor will then eventually make its way into other 2018 devices.

Does a Snapdragon processor run your device? What do you think of Broadcom’s attempts at buying Qualcomm? Let us know in the comments below, or on Google+, Twitter, or Facebook.

  Source: Reuters
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