Economy

Qualcomm to meet Broadcom to demand more after the revised bid

Qualcomm to meet Broadcom to demand more after the revised bid

Yesterday, February 8, Qualcomm said that this offer indicates "materially" undervaluing them, and it "falls well short of the firm regulatory commitment" required for approval of the transaction. Broadcom had put forward an offer that valued Qualcomm at $120 billion yesterday and many thought that the company's board would find the offer hard to refuse.

With Qualcomm's crucial shareholder's meeting less than a month away, Broadcom is waging a proxy battle for control of the company.

Broadcom earlier this week upped the ante for Qualcomm, calling the $121 billion bid its "best and final" offer for Qualcomm.

While Qualcomm did not disclose terms of the amended deal, it said it was "consistent" with its "global handset-level" pricing. Broadcom CEO Hock Tan is known for disciplined dealmaking; raising his bid for Qualcomm yet again risks throwing the deal - as well as his reputation - off balance.

Thus far, Broadcom has not publicly responded to Qualcomm's offer.

More news: Danilo welcomes "important" rest period for Manchester City players

Broadcom said its new offer for Qualcomm is contingent on that transaction either closing at the originally agreed price, or being abandoned. Another issue outlined by Jacob was that there was no valuation for NXP, which is a semiconductor company that Qualcomm is acquiring.

Qualcomm's response attempts to strike a balance between continued resistance of Broadcom's takeover attempt and heeding the calls of some Qualcomm shareholders, who urged the company in recent days to engage with its rival in case it can clinch an attractive deal. But in an open letter, Jacobs explains that while the board members unanimously shot down the offer, they were still willing to listen. The chipmaker is, however, finally willing to meet with Broadcom to determine "the true highest price at which you would be prepared to acquire Qualcomm" and to get firmer regulatory commitments.

One of those businesses might be Qualcomm's licensing segment, which could fetch about $38 billion including the associated intellectual property, estimates Srinivasan. Regulators may decide that it would be nearly a monopoly on the smartphone chip market.

Qualcomm is also trying to clinch an acquisition of its own, proposing to buy NXP Semiconductors NVfor $38 billion. Qualcomm released a statement saying its board would review the proposal "to determine the course of action it believes is in the best interests of the Company and its stockholders".

The chipmaker said "your proposal ascribes no value to our accretive NXP acquisition, no value for the expected resolution of our current licensing disputes and no value for the significant opportunity in 5G".


  • Frontier Airlines to fly nonstop from SA to Raleigh-Durham

    Frontier Airlines to fly nonstop from SA to Raleigh-Durham

    Beginning in June, the Denver-based carrier will offer nonstop flights to/from Denver International Airport. Tickets are available for purchase now via flyfrontier.com, and fares are priced as low as $29 each way.
    Salah speaks on leaving Liverpool for Real Madrid

    Salah speaks on leaving Liverpool for Real Madrid

    His stunning form has led to speculations that the LaLiga champions would make a move for the Egypt global . And the Egypt winger, proud to have been on the same team with him, admitted that he misses his friend.
    Director Considered Introducing Letitia Wright's Black Panther In Sequels

    Director Considered Introducing Letitia Wright's Black Panther In Sequels

    Three and a half stars out of four. "At first, he was just going to do a few songs for the film", Coogler said. Various aspects of Africa were used as influences to create the technologically advanced nation of Wakanda.
  • Bulls Trade Jameer Nelson to Pistons for Willie Reed

    Bulls Trade Jameer Nelson to Pistons for Willie Reed

    Ennis, 27, is in his fourth National Basketball Association season, averaging 6.3 points and 3.3 rebounds in his career. Nelson averaged 5.1 points, 2.2 rebounds and 3.6 assists over 43 games this season with the Pelicans.

    Tesla targets 2500 Model 3s a week while posting largest quarterly loss

    "It's just a matter of time". "People want Tesla products, but Tesla can't stop spending more money than it has". Musk said in July previous year that Tesla would probably be making 20,000 Model 3s per month by December 2017.
    Metro Detroit Weather: Winter Weather Advisory overnight

    Metro Detroit Weather: Winter Weather Advisory overnight

    The National Weather Service has issued a Winter Storm Watch across MA ahead of Wednesday's storm, excluding the southeast. Chance of precipitation? 100 percent! New precipitation amounts between a quarter and half of an inch possible.
  • Tottenham Hotspur vs Newport County

    Tottenham Hotspur vs Newport County

    The new faces: Serge Aurier , Toby Alderweireld , Danny Rose , Harry Winks , Erik Lamela and Heung-Min Son. It is never easy to come back but he showed he loves football and loves to train.
    New Details Released About Shootout That Killed El Paso County Sheriff's Deputy

    New Details Released About Shootout That Killed El Paso County Sheriff's Deputy

    The governor ordered flags to be lowered to half-staff at all public buildings starting Tuesday until the day of Flick's funeral. An El Paso County Sheriff's deputy works the scene of a shooting in Colorado Springs , Colo., Feb. 5, 2018.
    England provide first test as Ronald Koeman is announced as Netherlands manager

    England provide first test as Ronald Koeman is announced as Netherlands manager

    His long-term contract will take in the new UEFA Nations League, Euro 2020 and the 2022 World Cup campaign. He said: "I am proud to finally announce that I am the new manager of the Dutch national team".
  • Texas police officer fatally shot; suspect in standoff

    Texas police officer fatally shot; suspect in standoff

    He was taken to Medical city Plano but his name was not released while Richardson police worked to notify family and loved ones. According to Richardson police, officers encountered gunfire when they were responding to a disturbance call.
    Trans-Tasman Twenty20 Trophy: Australia beat England by five wickets

    Trans-Tasman Twenty20 Trophy: Australia beat England by five wickets

    He fell shortly after reaching his half-century as England spiralled to 126-6 and headlong into a disappointing total. Malan was the only England batsman to have scored a fifty in the innings, with the second-highest scorer being 22.
    Snap surges above its IPO price after its big earnings beat

    Snap surges above its IPO price after its big earnings beat

    Options are pointing to a double-digit move in the shares, with $15 puts and calls the most widely held options. In the last quarter, Snap lost $443 million, up from the $124 million it lost in Q3 2016.