Published: Tue, November 14, 2017
Science | By Cecil Little

Chip maker Qualcomm rejects $130 bn Broadcom merger bid

Reuters , citing "four people familiar with the matter", claims that Qualcomm's board of directors will review the $103 billion heavy offer, and could reply negatively straight away.

On Friday, Qualcomm shares concluded at $64.57, while Broadcom finished at $264.96. And that doesn't take into account ending Qualcomm's royalty rate feuds with Apple (aapl) and another unidentified phonemaker that are costing the company another $3 billion a year or more.

Beyond that, Qualcomm CEO Steve Mollenkopf said today he and the board of directors believe that the company can further create value for shareholders with the upcoming transition to 5G.

Liam Payne Takes the Stage at MTV EMAs 2017
In a first for the EMAs, which were created in 1994, MTV announced categories stripped of gender in a bid to "break barriers". Taylor Swift, who was expected to be one of the big winners of the night with six nominations, failed to win any awards.

Qualcomm's decision was expected, analysts said, as unsolicited bids often are rebuffed as a negotiating tactic.

"It is the board's unanimous belief that Broadcom's proposal significantly undervalues Qualcomm relative to the Company's leadership position in mobile technology and our future growth prospects", executive chairman Paul Jacobs said in a release.

Broadcom said it is "fully committed" to the takeover.

Stabbed At Mall of America; Suspect Arrested
Family members were apparently able to disarm the suspect and Bloomington police took the suspect into custody. The incident took place in the dressing room area on the first floor of Macy's , the Associated Press reports .

Qualcomm provides chips to carrier networks to deliver broadband and mobile data. But antitrust authorities already have challenged Qualcomm's business practices in several countries, and the combined companies would hold a dominant position in the wireless industry. They also stated that Broadcom "undervalues" them.

This is just not how these big acquisitions work, usually, these companies sit together, work for a while and try to negotiate important details and then go to the public. Qualcomm and Broadcom would be the third largest producer of semiconductors behind Intel and Samsung.

Singapore-based Broadcom made the offer last week in what would have consolidated two major players in the booming sector fueled by growth in smartphones and other connected devices. "We continue to believe our proposal represents the most attractive, value-enhancing alternative available to Qualcomm stockholders".

Famed gossip columnist Liz Smith dies aged 94
She also worked at New York Newsday and the New York Post . "She dished, but always found a way to make it entertaining and fun". Her column was widely syndicated, and at her peak she earned more than $1 million a year, according to the New York Times .

Broadcom doesnt care about the outcome of that deal – it has stated that it wants to acquire Qualcomm with or without NXP.

Like this: