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Broadcom’s Historic $103Bn Bid on Qualcomm is a Tech Ruckus

Broadcom is reported to have made a historic bid to acquire the smartphone chip supplier Qualcomm for $70 per share or $103 billion, including debt.

Broadcom

To make the end of the year sound more dramatic for semiconductor merger and acquisitions, Broadcom is reported to have made a historic bid to acquire the smartphone chip supplier Qualcomm for $70 per share or $103 billion, including debt.

According to Bloomberg, where the news first made the space – under the terms of the bid, Broadcom would pay $60 per share in cash and $10 per share in Broadcom stock.

If Broadcom successfully acquires Qualcomm, Broadcom can become the third-largest chipmaker trailing behind Intel Corp. and Samsung Electronics.

The wireless and Wi-Fi network duo merger can ignite a new era for handsets. It is also said the acquisition will become the biggest technology acquisition in history, leaving behind Dell $67 billion buyout of EMC in 2015.

In addition, Broadcom is also expected to acquire NXP Semiconductors (NXPI), which Qualcomm agreed to buy in 2016 for $38 billion. The takeover is yet to be completed due to an ongoing antitrust investigation.
The Broadcom-Qualcomm deal, if struck, would face heavy regulatory scrutiny given their sheer size, and heavy level of consolidation in the chip industry.

The news is known to have raised Qualcomm’s share to 3.7% in pre-market trade at the time of writing while Broadcom is up 1.1%.

A combined Broadcom-Qualcomm would become the dominant supplier of chips used in the 1.5 billion or so smartphones expected to be sold around the world this year. It would raise the stakes for Intel Corp, which has been diversifying from its stronghold in computers into smartphone technology by supplying modem chips to Apple Inc.

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Niloy Banerjee

A generic movie-buff, passionate and professional with print journalism, serving editorial verticals on Technical and B2B segments, crude rover and writer on business happenings, spare time playing physical and digital forms of games; a love with philosophy is perennial as trying to archive pebbles from the ocean of literature. Lastly, a connoisseur in making and eating palatable cuisines.

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