Skip to content

March 9, 2018

Qualcomm and Broadcom make moves as the merger saga continues

by John_A

Qualcomm and Broadcom, the world’s two largest chipmakers, have been in a will-they/won’t-they dance for quite awhile now in regards to a merger. Today, the companies made dueling announcements: Qualcomm brought in Jeffrey Henderson as an independent board chairman, while Broadcom sent Congress a letter proclaiming a possible hostile takeover isn’t a threat to US national security.

The Qualcomm news is significant because it signals that the company’s board is trying to make an independent decision in regard to the merger. While Henderson has been on Qualcomm’s board since 2016, he’s not tied to the company and can steer decision making in the direction that’s the best interest of Qualcomm and its shareholders.

Meanwhile, Broadcom is in defensive mode with its letter to Congress outlining why its proposed $117 billion acquisition of Qualcomm would be a good thing. According to The Wall Street Journal, Broadcom promised not to sell “any critical national security assets to any foreign companies,” which is probably a good thing.

The main issue that has long been in the way of the Broadcom-Qualcomm merger is pricing. The Qualcomm board believes that Broadcom’s offer of $79 per share severely undervalues the the company. It remains to be seen whether any movement will be made on this front.

Via: The Wall Street Journal

Source: Qualcomm, Reuters

Advertisements
Read more from News

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

Note: HTML is allowed. Your email address will never be published.

Subscribe to comments

%d bloggers like this: