Broadcom to Bid on Qualcomm
You are here

Broadcom to Bid on Qualcomm

Broadcom to Bid on Qualcomm

Chipmaker Broadcom is bidding $103 million to purchase fellow chipmaker Qualcomm. This bid is not only unsolicited, but it’s also considered a hostile bid. While Qualcomm has turned down what would be the largest acquisition in the history of the tech sector, Broadcom is planning on trying a round-about way to get the deal done. According to the people familiar with this transaction, this would involve starting a proxy fight for control over Qualcomm’s board. All these proceedings will start Monday when Broadcom announces its slate of candidates to run against Qualcomm’s current board.

Broadcom has quite an extensive line-up, consisting of nine men and two women as board of director nominees. Many of these candidates have considerable experience in the technology sector. Private equity firm Silver Lake has helped Broadcom with the effort to recruit the nominees.

This line-up of board of directors will be heavily scrutinized as its nominees will be asked to put Qualcomm up for sale, and also have to oversee the company operations until a deal with Broadcom closes.

If shareholders are voting with their wallets, they will most likely go along with the challengers. According to a report by Reuters, getting regulators to sign off on a Broadcom purchase of Qualcomm could take as much as a year longer.

Another anonymous source said that Broadcom is not planning on announcing a higher bid for Qualcomm. Sources also say that any higher bid would be announced in March following the results of the Board of Directors voting, which will take place on March 6. A new bid could be announced if the results do not allow Broadcom to unseat Qualcomm Board of Directors.

Currently, Qualcomm is engaged in a patent infringement dispute with Apple. So, unless this legal dispute is resolved in the next few months, Broadcom’s board of director nominees will have to oversee the resolution of that issue as well.

In October 2016, Qualcomm had signed an acquisition deal with NXP Semiconducters NV. Qualcomm is also trying to close this deal. However, Broadcom has indicated that it is willing to acquire Qualcomm irrespective of whether it closes this deal with NXP.

Tanuja Thombre
Tanuja Thombre
A Soft Skills and Behavior Trainer by passion and profession, with 8 years of experience into Mortgage Banking sector. Currently I am working as a Training Consultant and I cater to the training needs across various industries. This also allows me to interact with, train and learn various aspects of human modes. Adorned with certifications from various institutes like Dale Carnegie & Steven Covey. I have a natural instinct for writing; every once a while, a Blog, a short article and in the future I plan to author a Book. When it comes to writing, I believe there is seldom anything as appealing as Simplicity.

    Leave a Reply


    This website uses cookies to ensure you get the best experience on our website. Privacy Policy