Broadcom raises its offer for Qualcomm to $120bn
5 February 2018 | 0
A merger of the two could result in greater synergies in design and development – or it could allow a single, powerful supplier to jack up prices in some markets.
Last November Broadcom offered to acquire Qualcomm for $70 per share, or around $103 billion, but Qualcomm’s board rejected the bid, saying it wanted tens of billions more.
It’s almost got it: Broadcom has increased its offer to $82 per share – more than $120 billion.
Qualcomm is in the middle of a giant acquisition of its own, seeking to buy chip maker NXP Semiconductors. Broadcom made its latest offer conditional on Qualcomm closing that deal at the current offer price, or walking away from the deal: It’s OK with raising its own bid, but doesn’t want its target spending any more money.
The offer for Qualcomm dwarfs Broadcom’s last big acquisition, in which it paid $5.5 billion to acquire Brocade, a manufacturer of networking hardware for data centres.
IDG News Service