Qualcomm Says Two Big Buyers Likely to Bail Over Broadcom Tie-Up
Qualcomm warned investors that two of its most important customers have threatened to take their business elsewhere should Qualcomm be acquired by Broadcom. Qualcomm didn't name the customers, but said together they contribute a combined $1 billion in chip revenue. Qualcomm's most important customers are Apple and Samsung, followed by Huawei, LG, Sony, Oppo, and Xiaomi. The customers in question cited a lack of confidence in Broadcom's ability to lead a combined Qualcomm-Broadcom entity as the impetus for their decisions. Broadcom made a second offer for Qualcomm this week, but Qualcomm's board rejected it. The two companies will, however, meet over the next few days to discuss the possibilities of a merger. Some of the biggest questions Qualcomm wants answered concern how much more is Broadcom willing to spend on the acquisition, and what will it do to ensure the deal is completed successfully. Qualcomm is also worried about antitrust issues, and pointed to several big deals that have taken more than 18 months to clear regulatory hurdles. Broadcom has offered to pay Qualcomm $8 billion should the merger fail to be approved.
Qualcomm Rejects Broadcom's Latest Acquisition Offer, But Leaves Door Open
Qualcomm's board of directors today unanimously rejected Broadcom's revised bid to acquire the company for $121 billion. Qualcomm's board continues to insist that Broadcom is undervaluing Qualcomm's overall worth.
Qualcomm Says It Met with Broadcom to Discuss Acquisition
Qualcomm today said members of its board of directors and senior management met with Broadcom to talk about the latter's acquisition offer. Broadcom offered to buy Qualcomm for $121 billion, but Qualcomm shot the deal down.
Qualcomm Says Broadcom's Overtures Not Striking Right Notes
Qualcomm today said Broadcom's acquisition offer simply isn't good enough as currently proposed. The companies met earlier this week to go over some of the finer points of Broadcom's $121 billion bid to purchase Qualcomm, and Qualcomm still came away leery that the deal won't work out.
Broadcom Lowers Offer for Qualcomm, Qualcomm Says No Way
Broadcom revised its offer to acquire Qualcomm downward by $3 per share after Qualcomm increased its own bid to buy NXP Semiconductors. Broadcom said, "Qualcomm's board acted against the best interests of its stockholders by unilaterally transferring excessive value to NXP's activist stockholders." Broadcom would have preferred to see Qualcomm act together with Broadcom to broker the right deal for NXP while still allowing Broadcom to move forward with its own offer to buy Qualcomm.
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