Qualcomm rejects massive acquisition offer from Broadcom

Saul Bowman
November 16, 2017

Semiconductor giant Qualcomm has rejected a $130 billion bid from fellow chipmaker Broadcom that could represent the biggest-ever takeover in the tech sector.

On November 6, 2017, Broadcom Limited (AVGO) announced a proposal to acquire all of the outstanding shares of Qualcomm for per share consideration of $70.00 in cash and stock.

Qualcomm has officially rejected the US$105 billion (about RM 440 billion) takeover offer from Broadcom. The preparations for the board meeting indicate that Qualcomm is poised to rebuff the bid as insufficient as early as Monday, although it may decide to spend a few more days this week to prepare its full response to Broadcom, the sources added. The sources said Broadcom was preparing to submit a slate of directors by Qualcomm's December 8 nomination deadline. The board of directors believes the proposal is not in the best interest of Qualcomm and also undervalues the company. Broadcom is said to be considering a proxy contest, asking Qualcomm stockholders to vote on replacing the latter's current board with a slate of candidates put up by Broadcom.

ZDNet has reached out to Broadcom and will update if we hear more.

The sources asked not to be identified because the deliberations are confidential.

It's not clear how Broadcom will respond.


Qualcomm provides chips to carrier networks to deliver broadband and mobile data.

It comes as Qualcomm seeks a $47 billion acquisition of Dutch rival NXP, a deal that is the subject of a European Union antitrust probe.

Qualcomm shares closed at $64.57 on Friday, while Broadcom ended at $264.96.

In Entwistle's view were Qualcomm to accept the acquisition offer it would increase its dependence on the smartphone market - at a time when it has been working to expand beyond smartphones, such as via a long-in-the-works acquisition of chipmaker NXP, which has a focus on car-related applications, security-based identification and IoT.

Shares of Qualcomm have been declining in value in the recent quarters, which is why Broadcom made its proposal.

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER