Published: Tue, November 07, 2017
Markets | By Erika Turner

Broadcom offers to buy Qualcomm in $130 billion deal

Broadcom offers to buy Qualcomm in $130 billion deal

The merged companies could become the third-largest chipmaker in the world.

While the value of the proposed bid has yet to be made public it is expected that the offer will be in the range of around $70 to $80 per share, valuing Qualcomm at over $100billion.

Shareholders of both companies seemed to approve however - the share price of Qualcomm and Broadcom rose as news of the bid emerged, Whether this feeling of optimism will persist in the face of takeover battle remains to be seen.

The acquisition would be the largest-ever in the technology industry.

The company's stock recently took a hit after the WSJ reported that Apple planned to drop Qualcomm components in future iOS devices - in favor of Intel chips or possibly MediaTek.

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Any deal between Broadcom and Qualcomm would have to be approved by Antitrust officials, who are still considering Qualcomm's purchase of NXP.

The Financial Times is reporting that Broadcom is planning to acquire NXP, as well as Qualcomm. The statement said that there would be no further comment from the company until the assessment was completed.

"Our proposal provides Qualcomm stockholders with a substantial and immediate premium in cash for their shares, as well as the opportunity to participate in the upside potential of the combined company", said Hock Tan, president and chief executive officer of Broadcom.

"We would not make this offer if we were not confident that our common global customers would embrace the proposed combination, and we do not anticipate any material antitrust or other regulatory issues that would extend the normal timetable for closing a transaction of this nature".

The bid comes as Broadcom plans to move its headquarters to the United States from Singapore.

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