• BURN MEDIA
    • Memeburn
      Tech-savvy insight and analysis
    • Motorburn
      Because cars are gadgets
    • Ventureburn
      Startup news for emerging markets
    • Jobsburn
      Digital industry jobs for the anti 9 to 5!
qualcomm

It’s official: Broadcom makes $130bn offer for Qualcomm

A short time ago, it was reported that Broadcom was putting together a rather substantial offer for Qualcomm. It was claimed that the deal would be valued at just over US$100-billion. Now, Broadcom has made its offer official, valuing the transaction at just over US$130-billion.

The cash and stock offer stands regardless of whether Qualcomm’s US$47-billion deal to acquire NXP is successful or not, the wireless chipmaker claimed in a press statement.

The proposal would see Qualcomm acquired at US$70 a share.

“Under Broadcom’s proposal, the US$70 per share to be received by Qualcomm stockholders would consist of $60 in cash and $10 per share in Broadcom shares,” the company wrote. “Broadcom’s proposal represents a 28% premium over the closing price of Qualcomm common stock on 2 November 2017, the last unaffected trading day prior to media speculation regarding a potential transaction, and a premium of 33% to Qualcomm’s unaffected 30-day volume-weighted average price.”

Broadcom’s leadership elaborated on the offer.

“This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products. We would not make this offer if we were not confident that our common global customers would embrace the proposed combination,” said Hock Tan, president and CEO of Broadcom. “With greater scale and broader product diversification, the combined company will be positioned to deliver more advanced semiconductor solutions for our global customers and drive enhanced stockholder value.”

Broadcom outlined a few reasons why the acquisition made sense, saying the two businesses were complementary, the larger scale would result in better innovation and that the combined company would have an “enhanced financial profile”.

 

Author Bio

Hadlee Simons
Terrible puns make Hadlee Simons difficult to work with, but he brings over seven years of tech journalism experience to the table. When he's not at work or watching motorsport, he's in the foetal position on a jiu jitsu mat. More