Broadcom Says It Will Invest $1.5B In US to Win Qualcomm
Looking to assuage fears in the U.S. government, Broadcom today committed to creating a $1.5 billion fund that it will use to invest in technology and engineers. Broadcom claims part of its business model is to acquire companies and focus resources to strengthen that company's core franchise. In the case of Qualcomm, Broadcom says it will help the firm focus on 5G. "Broadcom has a proven track record of managing R&D for maximum impact and investing in core franchises. Broadcom will not only maintain the R&D resources Qualcomm devotes to 5G and innovation in future wireless standards — we will also focus R&D spend to those critical technologies that are essential to the U.S.," said Broadcom. The company's attempt to purchase Qualcomm has triggered a CFIUS review, which is often needed when foreign companies look to invest in or buy U.S. companies. The government wants to ensure a national security threat does not exist in Broadcom's plan, and will spend the next 30 days reviewing the proposed deal. Broadcom said it will use $1.5 billion to help train engineers and fund 5G research and development. Further, it claims it's efforts to repatriate from Singapore to the U.S. will be complete by May and it will have some 25,000 U.S. employees.
Feb 8, 2018
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.
Feb 16, 2018
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.
Feb 22, 2018
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.
Mar 5, 2018
The U.S. government ordered Qualcomm to cancel a vote scheduled for Tuesday to allow the government more time to review a potential merger between Qualcomm and Broadcom.