Last week Broadcom made an offer to acquire Qualcomm at $130 Billion, which is $70 per share which consist of $60.00 in cash and $10.00 per share in Broadcom shares. Qualcomm today announced that its Board of Directors unanimously rejected the unsolicited proposal by Broadcom.
Qualcomm said that the proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty. This would have been largest tech deal ever, and buying Qualcomm would have made Broadcom third-largest chipmaker right behind Intel and Samsung Electronics.
Last year Qualcomm agreed to acquire NXP Semiconductors, world’s biggest largest makers of chips for vehicles for $110.00 per share ($47 billion) in cash.
Paul Jacobs, Executive Chairman and Chairman of the Board of Qualcomm Incorporated, said:
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.
Steve Mollenkopf, Chief Executive Officer of Qualcomm Incorporated, said:
No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry. We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G.
Tom Horton, Presiding Director for Qualcomm Incorporated,said:
"Qualcomm rejects Broadcom's takeover proposal",
The Board and Management are singularly focused on driving value for Qualcomm’s shareholders. After a comprehensive review, conducted in consultation with our financial and legal advisors, the Board has concluded that Broadcom’s proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty. We are highly confident that the strategy Steve and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer.