Qualcomm Rejects Broadcom’s Acquisition Offer
Last week, Broadcom made a big move to acquire rival chipmaker Qualcomm in a takeover bid valued at $130B, or $70 per share.
However, this week, Qualcomm’s board voted unanimously to reject the offer—Paul Jacobs, executive chairman and chairman of the board stating that “Broadcom’s proposal significantly undervalues Qualcomm relative to the company’s leadership position in mobile technology and our future growth prospects.”
Whether the statement reflects the possibility of accepting a higher bid remains to be seen, but the bid has already boosted Qualcomm’s stock price, while Broadcom CEO Hock Tan responded that his company’s shareholders are still interested in the deal. “It remains our strong preference to engage cooperatively with Qualcomm’s Board of Directors and management team,” he said in a statement.