Broadcom Proposes to Oust Qualcomm's Board
Broadcom today suggested Qualcomm's shareholders elect an entirely new board of directors during the latter's planned annual shareholder meeting on March 6, 2018. Broadcom took the opportunity to nominate 11 people to replace Qualcomm's board. The idea is to facilitate a sale or merger between the two entities. In November, Broadcom offered to buy Qualcomm for about $105 billion. Qualcomm's board later declined. Broadcom insists that its initial proposal received positive attention and the company continues to believe bringing the two together would benefit shareholders and customers. "We have repeatedly attempted to engage with Qualcomm, and despite stockholder and customer support for the transaction, Qualcomm has ignored those opportunities," said Hock Tan, President and Chief Executive Officer of Broadcom. "The nominations give Qualcomm stockholders an opportunity to voice their disappointment with Qualcomm's directors and their refusal to engage in discussions with us." Qualcomm shot back, "Qualcomm believes that this action is a blatant attempt to seize control of the Qualcomm Board in order to advance Broadcom’s acquisition agenda." Qualcomm insists Broadcom does not have Qualcomm's shareholders in its best interests. Qualcomm also suggested Broadcom doesn't have the financing and the details regarding its planned redomiciling from Singapore to the U.S. are murky at best. "No company in the industry is better positioned than Qualcomm to lead the transition to 5G," said Tom Horton, Qualcomm’s Presiding Director. "Qualcomm stockholders expect a Board that will support this innovation while evaluating objectively the full range of opportunities for all Qualcomm stockholders."
Qualcomm Rejects Broadcom's Acquisition Offer
Qualcomm's board of directors today unanimously rejected Broadcom's Nov. 6 offer to buy the company in a deal that would have been valued at approximately $130 billion.
Broadcom Takes Aim at Qualcomm with Unsolicited $130B Bid
Broadcom today made an unsolicited offer to buy Qualcomm for $70 per share, a deal valued at approximately $130 billion. According to Broadcom, the merged entity would be a diverse communications semiconductor company that would be able to accelerate innovation, deliver more advanced products, and create compelling financial savings/efficiencies.
Qualcomm to Cut Jobs Amidst Cost Restructuring
Qualcomm today said it will pursue aggressive cost restructuring, including the elimination of jobs, as it seeks to balance its financials. Qualcomm indicated it plans to slash $1.4 billion in expenses through a number of different actions, including job cuts of about 4,500, or 15% of its work force.
Qualcomm Weighing Potential Breakup and Job Cuts
Qualcomm is preparing to conduct an in-depth review of its corporate strategy that could lead to the company breaking into several separate entities, reports the Wall Street Journal. Activist investors have begun to push Qualcomm towards a possible split, which would see the company's chip-production and patent-licensing businesses pulled apart.
Qualcomm to Hold Onto Chip Biz for the Time Being
Qualcomm does not plan to sell off its mobile chip business, according to Executive Chairman Paul Jacobs. Investors have been putting pressure on Qualcomm to spin off the unit, which one called "worthless." Some would prefer that Qualcomm operate strictly as a patent-licensing business.
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