Tencent Technology News, November 6, the US communications chip maker Broadcom announced that it will spend 130 billion US dollars to acquire Qualcomm, which will become the world's largest technology industry's history of M & A. Qualcomm believes the outside world will oppose the acquisition, but according to foreign media latest news, Qualcomm responded that it will assess Broadcom's acquisition plan.
According to the U.S. website today, Broadcom's offer is $ 103 billion. If Qualcomm's debt is considered, the total offer is $ 130 billion. If the acquisition is successful, the combined company will have an annual turnover of more than $ 51 billion. Become another semiconductor industry giant enterprises.
Qualcomm made a response to Broadcom's offer. In an official statement, Qualcomm said the board will evaluate Broadcom's acquisition plan and Qualcomm said it will take a course of action that maximizes shareholder interests.
But then Qualcomm after the assessment whether and Broadcom acquisition negotiations, or to be rejected, it is still unknown.
Before the U.S. media quoted people familiar with the matter as saying that Qualcomm internally tends to develop independently and will not accept mergers and acquisitions by external companies. In addition, the acquisition of Broadcom may evolve into a hostile takeover, in which Broadcom forcibly conducts various mergers and acquisitions without Qualcom's consent, such as persuading its shareholders, influencing Qualcomm's board of directors' decisions, buying stocks in the open market, and more.
Broadcom's chief executive is Chinese native Chen Fuyang, who is passionate about mergers and acquisitions. The current Broadcom company is also made through several major mergers and acquisitions expansion, which also includes the United States "old Broadcom" and Singapore chip maker Anhua high companies. Broadcom is also Apple's mobile communications chip supplier, but in the global visibility, Broadcom less than Qualcomm.
Qualcomm is currently the world's most influential handset processor supplier, its Snapdragon processor has become synonymous with high-end handset processor, due to the relatively weak strength of MediaTek competitors, Qualcomm has mastered a similar year in the computer market, Intel Dominance. In addition Qualcomm also owns numerous mobile communications patents, get a lot of money through patent licensing each year.
On Monday, Qualcomm shares rose slightly, while last Friday after the news came out, Qualcomm shares have soared more than 10%. Broadcom shares rose modestly on Monday, signaling a generally neutral approach by the capital markets to Broadcom's acquisition plan.
Broadcom said it will offer $ 70 a share for each Qualcomm stock, including $ 60 in cash and $ 10 in new company stock.
Last year, Qualcomm announced that it will spend 38 billion U.S. dollars to acquire NXP, a Dutch semiconductor company, and the deal is still not over due to antitrust. Broadcom said Broadcom will maintain the tender offer no matter the progress of the NXP acquisition.
Christopher Rolland, an industry analyst at the U.S. Securities and Exchange Commission, said on Monday that Broadcom excels in wired communications and Qualcomm is focused on wireless communications, and that the merger of Broadcom and Qualcomm is strategically positive and can deliver one to more than two effects. Be able to enhance the competitiveness of their respective businesses before the arrival of global 5G communications.
It should be pointed out that the current Qualcomm plunged into a dilemma, that is, legal disputes with the big client Apple. Apple and Qualcomm litigation in many countries around the world launched a lawsuit, Apple suspended payment of royalties through the contract foundry, resulting in a sharp decline in Qualcomm's earnings report, the share price has also been dragged down. Recently there is news that in next year's mobile phone, Apple will completely abandon Qualcomm's baseband processor, instead of buying all Intel products.