Nov. 10 News, Broadcom has issued a tender offer to Qualcomm, to be 130 billion acquisition of Qualcomm, foreign media recently said in a report, and Qualcomm patent licensing disputes Apple may decide the success of the acquisition.
Apple may decide the success or failure of Broadcom acquisition of Qualcomm, mainly Apple and Qualcomm patent licensing disputes, has affected the Qualcomm's share price.
Apple in January this year, Qualcomm will be brought to court, resulting in Qualcomm shares fell 12.7% the following day, before the news of Broadcom acquisition of Qualcomm, Qualcomm's share price has been unable to return to pre-Apple's level.
Qualcomm shares will rise once the Qualcomm solves the dispute with the patent licensing fees between Apple, Broadcom proposed by the acquisition price no longer has a strong appeal, it is difficult to attract the interest of Qualcomm shareholders.
Broadcom proposed the purchase price of 70 US dollars per share, the specific way for 60 US dollars in cash plus 10 US dollars Broadcom Equity. In the foreign media coverage of Broadcom acquisition of Qualcomm the previous trading day, Qualcomm shares closing price of 54.84 US dollars, Broadcom proposed the purchase price higher than the Nov. 2 Qualcomm shares closing price higher than 28%.
The day before Apple sued Qualcomm, Qualcomm's closing price of 62.77 US dollars. If Qualcomm to resolve the patent licensing dispute with Apple to stimulate Qualcomm shares back to the level before Apple's indictment, the appeal of Broadcom 70 dollars will be greatly reduced, Qualcomm shareholders may not accept.
Whether Qualcomm and Apple to resolve patent licensing disputes, see Qualcomm and Apple are willing to make concessions, if Qualcomm appropriate lower royalties, Apple also accept Qualcomm new license fee standards, the two sides may reconciliation, revocation Litigation in court.
However, Apple may also borrow Qualcomm acquisition by Broadcom to decide whether to resolve the dispute with Qualcomm.
If Apple believes that after Broadcom acquired Qualcomm, its favorable and stable to provide better parts, patent licensing fees also meet Apple, Apple may not be the same with Qualcomm to resolve patent disputes disputes;
Once Apple discovers that Broadcom is not good for Qualcomm after it acquires Qualcomm, it may promptly resolve the dispute over its license fees with Qualcomm to prevent it from being acquired by Broadcom.
Qualcomm and Apple around the patent licensing disputes arising from January this year.
On January 20, Apple filed a petition filing the court with Qualcomm, alleging that Qualcomm, using its monopoly on cell phone baseband chips, retaliated against Apple's FTC cooperation and refused to refund the promised $ 1 billion patent grant Fees, Apple asked Qualcomm to refund the promised 1 billion US dollars patent license fee.
In April, Qualcomm also launched a counterattack against Apple's lawsuit. In a 134-page pleading, Qualcomm listed 35 defense grounds, denying Apple's charges one by one, and filing Apple's injustices with Qualcomm, Apple launched a counterclaim.
Subsequently, the dispute between the two parties was extended to suppliers. Apple suppliers also began to stop paying royalties to Qualcomm. Qualcomm also brought four major Apple suppliers, Foxconn, Wistron, Compal and Heshuo to court.
Apple and Qualcomm disputes have seriously affected the Qualcomm revenue and profits.
QUALCOMM announced in the Nov. 1 fiscal fourth quarter fiscal 2017 earnings that Apple did not pay full royalties in the second quarter of fiscal 2017, the third quarter and the fourth quarter were completely unpaid, nor In response, Qualcomm's net profit fell 89% YoY in the fourth quarter of FY17.