Broadcom Increases Qualcomm Takeover Offer to $121 Billion

Broadcom says it has made its terminal offer to acquire San Diego-based chipmaker Qualcomm Inc. Co-ordinate to Reuters, the company on Monday increased its offer from $seventy per share to $82 per share after its earlier proposal was rejected by the Qualcomm board a few weeks ago. Overall, the new offering is worth $121 billion, while the earlier offer was worth simply $105 billion. While the Qualcomm top brass continues to resist the hostile takeover bid, the new offer is expected to increment pressure on the company's management to at least come to the negotiating table after the visitor'due south CEO, Steve Mollenkopf, dismissed the previous offer as 'not even worth because'.

Image Courtesy: Reuters

The revised $82 offer includes an increased stock component, while the greenbacks component remains the same. While the new offer includes $60 in greenbacks and $22 in Broadcom stock, the earlier offer comprised $sixty in cash and $10 in stock. While Broadcom shares savage three.13 percent at the NASDAQ to end the twenty-four hour period at $228.10, the Qualcomm stock got battered even more, falling six.57 percentage to end the day at $61.37.

The Qualcomm stock has been nether pressure recently amidst reports of Apple mayhap dropping the company in favor of Intel to supply modem chips for its next-generation iPhones. The latest developments volition, no doubt, create a farther headache for Mollenkopf and his team, specially, with a shareholder vote coming up in March. As for Broadcom CEO  Hock Tan, he's already said that this is his company'due south "all-time and final offer". According to him, "Information technology'southward an offering that provides more value to the shareholders of Qualcomm than whatsoever standalone value that Qualcomm has tried, or may think they tin try to create".

Source: https://beebom.com/broadcom-increases-qualcomm-takeover-offer/

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