Broadcom made an unsolicited bid to acquire Qualcomm a few months ago that was promptly rejected by the chipmaker. The former then revised its bid and submitted another one which was also rejected by the company. There has been much back and forth over this subject since then but it appears that Qualcomm might finally be open to a deal with Broadcom. It has proposed price talks with Broadcom for the very first time following Broadcom’s $117 billion offer.
Qualcomm’s proposal for price talks is being viewed as a potential first step toward a possible deal. At least it shows a willingness on Qualcomm’s part which was previously not willing to even consider a deal with Broadcom. The proposal follows a second meeting between the two companies that took place last week.
The company said today that all of the offers that Broadcom has made so far materially undervalue Qualcomm but it’s now proposing that the two companies sit down and discuss price and also look more closely at each other’s books.
Qualcomm Chairman Paul Jacobs made this proposal in a letter to Broadcom CEO Hock Tan, saying that the two companies should conduct a meeting focused on the price as soon as it’s convenient for both parties.
Just because Qualcomm has proposed price talks doesn’t mean that a deal can be reached. Qualcomm and Broadcom are likely going to disagree on a fair price for the company and if they can’t reach an agreement then there will be no progress in this matter.