Broadcom exploring options to acquire Qualcomm for over $100 billion: Report


Broadcom is exploring options to purchase chipset maker Qualcomm according to the sources close to the matter, reports Bloomberg and Reuters. The company is considering on bidding more than $100 billion in what could be the biggest ever takeover of a chipmaker.

According to the sources close to the matter, Broadcom is consulting advisers about the potential deal and options. However, the talks are private at the moment. Broadcom is planning to offer in the range of around $70 to $80 per share which brings the total value around $103 billion. Qualcomm is unaware of the Broadcom bid, and as of now, it is not certain whether Qualcomm would consider the deal or not.

After the news about the take over has started flowing in, Qualcomm share rose up as much as 19 percent in New York and closed up at 13% of about $61.81 per share valuing the company at $91 billion. While Broadcom rose up 5% with a total market valuation of $112 billion.

Broadcom’s headquarter move from Singapore to the United States, and the company already lists San Jose, California, as a corporate co-headquarters. As Qualcomm plans to close its $38-billion acquisition of NXP Semiconductors NV which is the world’s biggest largest makers of chips for vehicles, Broadcom is also open to acquiring NXP, according to one of the sources.

However, Antitrust officials who are required to approve a Broadcom-Qualcomm deal, are still considering Qualcomm’s acquisition of NXP. Both the companies declined to comment on the same, and if the deal does finally see the light in the day, stakes for Intel would be high which has been slowly diversifying into smartphone segment as well.

Qualcomm is one of the biggest chipset suppliers for Apple, LG, Samsung, and many others, while Broadcom is a major supplier of the WiFi chip to many of the same companies.

Source 1, 2