Broadcom’s bid to win the hand of Qualcomm ends in tears
There, there, never mind. There are plenty of other victims, er, fish in the sea
Singapore-based chip biz Broadcom announced today that it has withdrawn its bid for Qualcomm.
The intervention by the administration of United States President, Donald Trump, at the urging of the Committee on Foreign Investment in the United States (CFIUS), appears to have been the last straw for the soon-to-be-US-based chip business.
Some reports, including this one in the New York Times, have suggested that the US was worried about Qualcomm 5G standards not being under US ownership, with a United States Treasury official calling for a grilling of the deal (PDF) pointing to a change in licensing methodology of "patented Qualcom technologies".
As well as stepping back from the $117bn purchase, Broadcom has also withdrawn its nominees for Qualcomm’s board.
The San Diego-based chip-maker will doubtless be heaving a sigh of relief, having invested considerable time and effort in fighting off the take-over.
In its statement, Broadcom confirmed that it still intends to make its move to the US.
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“Although we are disappointed with this outcome, Broadcom will comply with the Order. Broadcom will continue to move forward with its redomiciliation process and will hold its Special Meeting of Stockholders as planned on March 23, 2018.”
Qualcomm did not immediately have a comment, other than a 13 March statement confirming the US Executive Order to halt the deal.
As Intel eyes Broadcom with interest, there may yet be more twists in the tale. But this part of the story, at least, is now at an end. ®