Broadcom adds a few billion to its indecent proposal to Qualcomm

Reports say it wants to slap $120bn-$145bn big ones on table

By Kat Hall

Posted in Business, 5th February 2018 13:27 GMT

Chip slinger Broadcom has turned up the heat on its hostile bid to take over rival Qualcomm today, with the semiconductor biz expected to raise its offer by between $15bn-$40bn (£10.7bn-£28bn).

Reuters and The Financial Times have respectively reported the Singapore-based firm will slap between $120bn (£85bn) and $145bn (£103bn) on the table to purchase the Snapdragon-maker.

Qualcomm had previously rejected Broadcom's $103bn (£73bn) buyout proposal, which it said "dramatically undervalued" the company.

But Broadcom appears to be drumming up support for a new deal ahead of a shareholders' referendum next month.

Qualcomm's processors power the vast majority of Android handsets, while Broadcom's notable products include the SoC at the heart of the Raspberry Pi.

If the two were to merge, it would create a semiconductor colossus. Last year Qualcomm turned over $22.3bn (£15.6bn), while Broadcom posted sales of $17.6bn (£12.5bn).

Some commented that the deal from Broadcom might be seen as opportunistic, as Qualcomm has faced a series of issues.

Last month, the European Commission fined Qualcomm €997m (£872m) for abusing its dominant market position by paying Apple billions to exclusively use its chipsets.

Qualcomm said it will appeal against the decision, adding that it is confident the expired agreement with Apple "did not violate EU competition rules or adversely affect market competition or European consumers."

The US chip biz is also finishing off its own slurp of NXP Semiconductors for $47bn (£33bn), which European antitrust regulators have already waved through. ®

Sign up to our NewsletterGet IT in your inbox daily

9 Comments

More from The Register

Qualcomm disappointed by Broadcom's 'inadequate' shrinking package

Snapdragon giant confirms: Size really does matter

Now Europe is getting jitters over Broadcom's Qualcomm takeover bid

Lawmakers express concern about data protection

Broadcom confirms anti-trust probe, professes zero worries

Says probe doesn't impact wireless lines, leaving about a gazillion other products in play

Broadcom's buyout of Qualcomm bogs down as DC blocks merger

'Great, great company' to 'security risk' in six months

Qualcomm asks Broadcom over for lunch and a proper chat about being bought

Brushes off latest $121bn bid as too low, too risky, but is willing to discuss deal

Broadcom, you've been punk'd: Qualcomm puts stockholder vote on hold for US security probe

It was your plan all along! 'Oh no it wasn't.' Oh yes it was. 'CFIUS is BEHIND you!'

Broadcom moves to the US: CFIUS-inspired redomiciling makes for happy voters

... even though the sound of it to Qualcomm's quite atrocious

Broadcom baits hook with promise of $1.5bn investment fund to catch Qualcomm

Telco promises to pump big bucks into 5G if US signs off on merger

Qualcomm rejects Valentine's Day takeover love-in with Broadcom

Cheapo merger terms wouldn't get past regulator, it says

US national security agency sniffs around Broadcom bid for Qualcomm – reports

No one expects the CFIUS! *Bless you*