Qualcomm rejects Broadcom’s second offer to buy the company
Despite increasing its offer by $16 billion, Qualcomm still refuses to sell to Broadcom.
Ever since early November of last year, there have been talks of Broadcom being interested in acquiring chip-maker Qualcomm. The deal was turned down by Qualcomm’s Board of Directors later that same month, but a report quickly followed this up suggesting that Qualcomm would reconsider its decision if Broadcom offered more money.
Broadcom recently came back to Qualcomm with a new offer of $121 billion ($16 billion more than the initial $105 billion), but even so, Qualcomm continued to refuse the deal.
Qualcomm says that the $121 billion “materially undervalues” its worth, and this is essentially the same response the company gave when it rejected Broadcom’s first offer. However, while this is good news for the time being, there’s still the potential that Qualcomm will eventually sell.
It’s reported that Qualcomm is willing to meet with Broadcom to try and get a price that it deems itself to be worthy of, so if Broadcom continues to offer more cash, we may be looking at a buyout.
Stay tuned, folks.
Broadcom buying Qualcomm could grind innovation to a screeching halt