Broadcom is reportedly exploring a massive acquisition of $80 billion Qualcomm

Lena Tucker
November 4, 2017

Shares of wireless chip technology giant Qualcomm (QCOM), at $81 billion in market cap, are up $3.86, or nearly 7%, at $58.70, and were up 9% at one point, following a headline from Bloomberg that even bigger giant Broadcom (AVGO) is "exploring a possible takeover" of Qualcomm.

Update: Bloomberg's sources say Broadcom could offer Qualcomm about $70 per share in cash and stock within the next few days.

According to a report in the WSJ, Qualcomm, now embroiled in a number of lawsuits with Apple, is apparently about to receive an unsolicited takeover bid from semiconductor designer Broadcom.

No final decisions have been made and there is no guarantee a deal will go ahead. That would give Qualcomm a market value of $103.2 billion. Broadcom rose 4.7 percent, for a market valuation of $111 billion.

The saga kicked off almost a year ago, in January 2017, when Apple first filed a lawsuit against Qualcomm for allegedly abusing its market position to extract more money from hardware manufacturers.

Qualcomm declined to comment, while Broadcom did not immediately respond to a request for comment.

Broadcom, based in Irvine, was acquired in 2016 by Avago Technologies, a Singapore based semiconductor outfit that has been growing through acquisitions - including LSI Corp., PLX Technology, Emulex and others. A subsequent report in the Wall Street Journal said the bid could come as early as this weekend.

Broadcom, a major supplier to Apple, said this week it will return its headquarters to the USA from Singapore.

Stock of San Diego-based Qualcomm jumped 12.7 percent to close at $61.81.

At issue between Qualcomm and Apple are licensing fees the chipmaker charges for patents that cover the basics of how mobile phone systems work. The deal is facing regulatory examination in Europe and opposition from some shareholders including activist hedge fund firm Elliott Management Corp., which has argued the offer undervalues NXP.

The two companies are already involved in big deals from about a year ago.

Other reports by AllAboutTopnews

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