Broadcom explores deal to buy Qualcomm

Qualcomm is in the middle of its own acquisition efforts, as it works to close its $47 billion purchase of NXP Semiconductors.

Qualcomm shares rose as much as 19 percent in NY in their biggest intraday move since October 2008. Bloomberg News, citing unnamed sources "familiar with the matter", cited a possible offer of $70 a share in cash and stock "likely to be made in the coming days" if a decision to proceed is made.

Qualcomm declined to comment, while Broadcom did not immediately respond. We wondered then if this sudden bout of American patriotism was really about smoothing the path to approval for Broadcom's $5.9 billion takeover of Brocade Communications Systems Inc. and future deals it might contemplate as one of the semiconductor industry's most active acquirers.

Formerly known as Avago Technologies, Broadcom Limited was created previous year after Singapore-based Avago acquired Broadcom Corporation for $37 billion.


Broadcom, a major supplier to Apple, said this week it will return its headquarters to the USA from Singapore. Broadcom now lists Singapore and San Jose as co-headquarters.

In October, Qualcomm was struck with a $775 million fine in Taiwan for abusing its position in the baseband chip market.

Mollenkopf had said that Qualcomm's uniqueness made it easy to attack, but defending itself was "worth doing" and "very valuable to our shareholders".

Qualcomm is also still trying to complete its $40 billion-plus takeover of NXP Semiconductors NV. Based on 2016 revenue, the enlarged company would be the world's third largest chipmaker behind Intel Corp. and Samsung Electronics Co. and give it a huge swath of the supply chain of vital phone components such as Wi-Fi and cellular modem chips.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.