Qualcomm has officially rejected the US$105 billion (about RM 440 billion) takeover offer from Broadcom. The offer from Broadcom was for US$60 in cash and US$10 in stock for each Qualcomm share; exchange that Qualcomm says undervalues the company.
Qualcomm released a statement on the bid, which reads:
“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.”– Paul Jacobs, executive chairman and chairman of the board, Qualcomm
The deal would have made Broadcom the third largest chip maker in the world, behind Intel and Samsung, With a large share of the mobile market powered by Qualcomm chips, the creation of the new conglomerate would have made waves in the tech industry.
Qualcomm may see the bid still go through, as Broadcom can go ahead with the takeover through a proxy bid. However, with the recent lawsuit from Samsung and Apple, Qualcomm may see its market share erode a notch if the latter chooses to find other suppliers for their modems in their upcoming iPhone models.
(Source: Bloomberg )