Monday, November 6, 2017

Broadcom Offers $130 Billion To Acquire Qualcomm

Semiconductor giant Broadcom unveiled its $130 billion bid for Qualcomm this morning, in a move, if successful, which would bring together two of Southern California's biggest technology companies. Broadcom that it has proposed to acquire all of the outstanding shares of Qualcomm for $70.00 in cash and stock. Broadcom said the deal would be split between $60.00 in cash and $10.00 per share in Broadcom shares. As part of the proposal, Broadcom said the deal would be dependent on the termination of Qualcommm's pending acquisition of NXP Semiconductors NV. According to Broadcom, it believes Qualcomm's cellular business is "highly complementary" to Broadcom's own portfolio. The combined company would have approximately $51 billion in revenues. Broadcom was started in Irvine, although its headquarters are now in San Jose; Qualcomm is based and was started in San Diego.