Qualcomm rejects Broadcom’s initial $105 billion takeover offer

Qualcomm logoLast week, Broadcom made an unsolicited offer to buy Qualcomm, one of the biggest SoC and cellular modem manufacturers for smartphones. Qualcomm officially rejected the initial bid today, which was for $105 billion (it was originally reported to be around $130 billion). When reports first surfaced about the offer, it was known that Qualcomm wasn't happy with the deal. In a statement released today, Qualcomm's board say the offer "significantly undervalues" the company.

"No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry," Qualcomm CEO Steve Mollenkopf said in the statement. "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."

Broadcom "remains fully committed" to the acquisition and said in its own statement that combining the two companies would create "a strong, global company with an impressive portfolio of industry-leading technologies and products." This could lead to a higher bid from Broadcom in the future, but there's no word on when Broadcom might make another offer. The deal could hinge on Qualcomm resolving a conflict with Apple, which has grown over the past year. Most Android smartphone manufacturers choose Qualcomm SoCs and cellular modems to save space and power thanks to the company's one-chip solution. Samsung and Apple are the only two smartphone OEMs who have a choice to not use Qualcomm technology because they both make their own chips.

Apple recently put an Intel modem in some of the new iPhone models, and that immediately angered Qualcomm. The company demanded royalties for the Intel modems, so Apple sued Qualcomm as a result. After some back-and-forth and Qualcomm reportedly withholding software needed to test its chips in iPhones, Apple may be looking to cut Qualcomm out of the iPhone equation entirely.

Resolving its issues with Apple would strengthen Qualcomm's position, but it seems unlikely that nearly a year's worth of conflict would be fixed in time for any deal to go through. Qualcomm could also bolster its standing by completing its acquisition of NXP Semiconductor, another chipmaker. The $39 billion deal was originally expected to close by the end of 2017, but now it may not close until early 2018.

Source: Ars Technica

Tags: Broadcom, Qualcomm

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Galaxy Note10 really is built around a 6.7-inch display
 
You may still be able to download your content
 
Facebook, Messenger and Instagram are all going away
 
Minimize apps to a floating, always-on-top bubble
 
Japan Display has been providing LCDs for the iPhone XR, the only LCD model in Apple’s 2018 line-up
 
The 2001 operating system has reached its lowest share level
 
The entire TSMC 5nm design infrastructure is available now from TSMC
 
The smartphone uses a Snapdragon 660 processor running Android 9 Pie
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 / 2
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
     12
3456789
10111213141516
17181920212223
24252627282930
31      




Poll

Do you use microSD card with your phone?
or leave your own version in comments (15)