Qualcomm rejects Broadcom’s $121 billion offer

Qualcomm says it will suffer irreparable damage if it accepts Broadcom’s offer.
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Qualcomm says it will suffer irreparable damage if it accepts Broadcom’s offer.
Qualcomm will apparently be “enormously and irreparably damaged” if it accepts Broadcom’s takeover offer and regulators reject it.

Qualcomm will apparently be “enormously and irreparably damaged” if it accepts Broadcom’s takeover offer and regulators reject it.

Qualcomm will apparently be “enormously and irreparably damaged” if it accepts Broadcom’s takeover offer and regulators reject it. The company recently rejected a $121 billion offer from Broadcom, saying it’s worth more than that. That was made up of a $82 per share bid, which consisted of $60 in cash and $22 in Broadcom’s stocks. Qualcomm also cited “deal certainty” as an issue for rejecting Broadcom’s offer.

On March 6th, Qualcomm stakeholders will be voting on whether Qualcomm’s current board of directors should be replaced by nominees that Broadcom submitted. That, of course, will make it easy for Broadcom’s $121 billion package to be accepted.

In a filing with the SEC yesterday, Qualcomm noted that it would lose business from two companies if acquired by Broadcom. While it is unclear which two companies these are, they are apparently responsible for $1 billion in chip revenues for Qualcomm. The companies are apparently not confident in Broadcom’s ability to be a leader in the technology industry.

That said, this doesn’t end Broadcom’s efforts just yet. The company is reportedly continuing its battle to buy Qualcomm. So, on March 6th, Qualcomm stakeholders will be voting on whether Qualcomm’s current board of directors should be replaced by nominees that Broadcom submitted. That, of course, will make it easy for Broadcom’s $121 billion package to be accepted.