Business

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

By Simon Sharwood

2 SHARE

Qualcomm has rejected Broadcom's latest attempt to buy it, but has also said it is willing to discuss doing a deal.

That's a change from the position the company adopted after Broadcom offered US$103bn to buy Qualcomm in November 2017. At the time Qualcomm's response to Broadcom rejected the offer and said nothing about how the deal might be done.

Earlier this week Broadcom increased its bid to $121bn.

Qualcomm's again rejected the bid, but its statement also offers the following lifeline:

Qualcomm has offered to meet with Broadcom to see if it can address the serious deficiencies in value and certainty in its proposal.

At any such meeting, Qualcomm have two questions for Broadcom.

The first is "What is the true highest price at which you would be prepared to acquire Qualcomm? Is it $82 per share or is it higher?" and would be asked because Qualcomm thinks Broadcom has undervalued its current business by not taking into account it recent acquisition of NXP and the likely future rivers of revenue to flow from 5G.

The second question asks "Is Broadcom willing to commit to take whatever actions are necessary to ensure the proposed transaction closes?" That one's on the table because Qualcomm doesn't want to get half-way into a tricky deal and then have to rebuild itself as an independent company.

Broadcom's last offer to Qualcomm was labelled a "Best and Final Offer". At the time of writing, Broadcom's web page, regulatory filings and social media accounts were silent on its attitude to Qualcomm's invitation. If that changes, The Register will let you know. ®

Sign up to our NewsletterGet IT in your inbox daily

2 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, 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!'

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

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

Qualcomm, Broadcom sitting in a tree, you'll have to cough up more if you wanna buy me

Just get a room already

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

No one expects the CFIUS! *Bless you*

Intel ponders Broadcom buy as Qualcomm's exec chair steps away

Rather than face a combined BroadQual, Chipzilla may break out the cheque book

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

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

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

Broadcom adds a few billion to its indecent proposal to Qualcomm

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