Qualcomm rejects Broadcom's record-breaking $105 billion takeover attempt


Paul Jacobs, Executive Chairman and Chairman of the Board of Qualcomm Incorporated, said specifically that the deal undervalues Qualcomm's leadership position in the industry and future growth prospects.

The combined revenue of the three firms in question - Qualcomm, Broadcom and NXP - is expected to touch $51 billion in FY 2017 with EBIDTA of aroud $23 billion, forecasts the semiconductor fiem, justifying its proposal.

Steve Mollenkopf, Qualcomm's CEO, also chimed in to say that the company is now in the best position possible for leading the semiconductor industry in regards to mobile, Internet-of-things, and more. Since then they've taken a bit of a kicking thanks mainly to the Apple litigation, but the Qualcomm board presumably expects that to be resolved in a satisfactory manner, which could well result in a boost to the share price.

Qualcomm Chief Executive Steven Mollenkopf has spent the past few days soliciting feedback from Qualcomm shareholders, and feels that Qualcomm's $70-per-share bid undervalues the company and does not price in the uncertainty associated with getting the deal approved by regulators, according to the sources. Broadcom is so interested that it sent an unsolicited acquisition offer to Qualcomm last week.

Semiconductor giant Qualcomm has rejected a $130 billion bid from fellow chipmaker Broadcom that could represent the biggest-ever takeover in the tech sector. If Broadcom is serious about the acquisition, it could sweeten the deal a bit and likely win the approval of Qualcomm's board.

Shares of Qualcomm have been declining in value in the recent quarters, which is why Broadcom made its proposal.

"Many have expressed to us their desire that Qualcomm meet with us to discuss our proposal", said Tan.

Broadcom doesnt care about the outcome of that deal – it has stated that it wants to acquire Qualcomm with or without NXP.

The right price for Qualcomm could be between $80 and $85 per share, and Broadcom could go up to $90, Susquehanna analyst Christopher Rolland told Reuters.

Qualcomm's reason for saying no? Do you think Qualcomm should have considered a buyout?

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