Broadcom Announces Bid for Qualcomm Takeover

RMerlin

Asuswrt-Merlin dev
Updated Monday 6 Nov by Tim Higgins

SAN JOSE, Calif., Nov. 6, 2017 /PRNewswire/ -- Broadcom Limited (NASDAQ: AVGO) ("Broadcom"), a leading semiconductor device supplier to the wired, wireless, enterprise storage, and industrial end markets, today announced a proposal to acquire all of the outstanding shares of Qualcomm Incorporated (NASDAQ: QCOM) ("Qualcomm") for per share consideration of $70.00 in cash and stock.
https://www.prnewswire.com/news-rel...nsaction-valued-at-130-billion-300549895.html

[original post follows]
https://www.neowin.net/news/broadcom-may-soon-make-a-record-bid-for-qualcomm

If this happens, this would be horrible for end-users, as suddenly two of the biggest competitors in that market would end up merging together, and they would control pretty much the large majority of the market share for routers (as well as other wifi-related products).
 
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RMerlin

Asuswrt-Merlin dev
I hope it gets rejected, for the consumer market's sake.
 

thiggins

Mr. Easy
Staff member
https://prnmedia.prnewswire.com/new...m-300549931.html?tc=PRNJ_email_html_headlines

Qualcomm is not rejecting it out of hand.
"The Qualcomm Board of Directors, in consultation with its financial and legal advisors, will assess the proposal in order to pursue the course of action that is in the best interests of Qualcomm shareholders. Qualcomm will have no further comment until its Board of Directors has completed its review."
 

System Error Message

Part of the Furniture
if broadcom takes over qualcomm, whos going to feed their snapdragon :p .

Still qualcomm makes better chips than broadcom. If broadcom has less competitors or none at all, it will be worse as there isnt a better competitor to keep broadcom on its toes not to mention broadcom devices costing a lot more than qualcomm especially on higher end.
 

RMerlin

Asuswrt-Merlin dev
There's also a lot of "ifs" in this whole thing. For instance, Broadcom wants to finalize moving their company to the US to make it easier for regulatory bodies to approve the deal.

For all the mentionned reasons, I hope this deal doesn't come to pass. This is one instance where regulatory bodies might want to deny it if it came to be accepted by shareholders.
 

Threska49

Regular Contributor
Bad idea for a number of reason and not just to US customers. Plus there's the NDA culture that Qualcomm is known for which will affect the right-to-repair movement and the Maker market as well.
 

sfx2000

Part of the Furniture
FWIW - I think we'll see QCOM reject BRCM's offer sometime this week (starting 11/12).

Basis:
  • US$70/share offer is undervalued based on sector performance
  • Does not account for regulatory risks
Risks to QCOM - Board of Directors is up for election in December 2017 - so Broadcom could nominate directors more friendly towards the merger as a proxy fight. Jana Partners is still a risk for QCOM and having two seats on the board, and the NXP distraction with Elliot Management trying to run up the price there on that deal)

Broadcom has been known to already meet with QCOM customers and big banks to suss out the details - Qualcomm has been pre-occupied with the NXP merger, and of course, the ongoing Apple battle (and the knock on effects with EU and Asian's regulatory folks).

Ticket buys the whole seat - one only needs the edge.
 

pege63

Very Senior Member
Intel made a offer to buy Broadcom now.
 
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Darcy

Senior Member
Trump’s Message in Blocking Broadcom Deal: U.S. Tech Not for Sale - Bloomberghttps://apple.news/Acl7HZLDFRDaPJQJFA396Ow


Sent from my iPhone using Tapatalk
 

avtella

Very Senior Member
Was expecting it to fail one way or another.
 

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