Qualcomm officially rejects Broadcom’s deal to buy the chip-maker
That was close.
At the beginning of the month, a report popped up indicating that Broadcom (the largest manufacturer of Wi-Fi chips for mobile devices) was going to propose Qualcomm with a deal to buy the company for a total of $100 billion. The possibility of such a deal made us rather nervous, so we’re relieved to hear that Qualcomm’s Board of Directors has officially rejected the offer.
Qualcomm issued a press released on November 13 saying that its board made a unanimous decision to pass on the deal that Broadcom has proposed, with Executive Chairman and Chairman of the Board of Qualcomm Incorporated, Paul Jacobs, stating –
It is the Board’s unanimous belief that Broadcom’s proposal significantly undervalues Qualcomm relative to the Company’s leadership position in mobile technology and our future growth prospects.
Steve Mollenkopf, Qualcomm’s CEO, also chimed in to say that the company is currently in the best position possible for leading the semiconductor industry in regards to mobile, Internet-of-things, and more. Mollenkopf continued with –
We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G.
With this potentially devastating deal put to rest, Qualcomm can now continue its neverending battle with Apple.
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