Battle of the ‘Coms

Broadcom/Qualcomm ‘negotiations’ take another heated step

The quest for the chip championship continues.

In what is being called the first steps in a ‘hostile takeover’, Broadcom nominated an entire new board of directors (11 seats) for Qualcomm on Monday. The aggressive move stirs the pot following Broadcom’s $103 billion, and then later, $105 billion offers to buy its fellow chipmaker last month, which the latter declined, saying it “greatly undervalued the company.”

The $105 billion bid remains on the table; unsolicited. Meanwhile, Qualcomm said Monday’s action was a “blatant attempt to seize control of the Qualcomm board in order to advance Broadcom’s acquisition agenda,” upon confirming reception of the list. Qualcomm shareholders will be able to vote for or against the Broadcom nominees at an annual meeting on March 6.

“These nominees are inherently conflicted given Broadcom’s desire to acquire Qualcomm in a manner that dramatically undervalues Qualcomm to Broadcom’s benefit,” Qualcomm said in a statement to Reuters. Since the initial offer November 3, whispers have circulated about Qualcomm’s stockholders suggesting a merger would be a good idea. So, while Monday’s unprovoked nomination for an entire new board of directors appears inconsequential at the moment, it does start a mental stopwatch until March 6 in the opinion of some.

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Trackbacks/Pingbacks

  1. Battle of the ‘Coms: Out of Chips | Electrical Apparatus Magazine - March 15, 2018

    […] for the future of the microchip and 5G networks ended Monday with a veto. Since Broadcom’s initial bids on Qualcomm earlier this winter, the ‘big guns’ have gradually been called in to regulate. First, the Treasury […]

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