Published By : 07 Nov 2017 | Published By : QYRESEARCH
On Monday, November 07, 2017, Broadcom introduced a US$130 bn bid for Qualcomm, its rival chip maker. The deal is said to be the biggest in the technology sector till date. The Singapore-based company has plans to return its domicile to the U.S. This deal consolidates two of the most prominent enterprises in the exceptionally booming technology sector, stimulated by the rising penetration of smartphones and a wide range of connected devices, starting from wearables to cars.
The unsolicited proposal of Broadcom amounted to US$70 per share, which included US$10 in stock and US$60 in cash, or 28% more than the closing price of Qualcomm on Thursday, November 02, 2017, before the reports of the merger surfaced. Hock Tan, the Chief Executive at Broadcom, said in a statement that this complementary transaction will place the combined enterprise as a leader in the global communication market with a remarkable portfolio of products and technologies. “With a wider product diversification and a greater scale, the combined enterprise will be in position to offer more technologically advanced semiconductor solutions to the company’s global consumers and boost stockholder value,” he added.
Qualcomm, headquartered in San Diego, California, stated that it would evaluate the proposal in a bid to pursue the strategy, which is in the best interests of the shareholders of Qualcomm.” The news of the deal came just after Tan made an appearance at the White House with the U.S. President Donald Trump for the announcement of their plans to shift the tech company back to the U.S. from Singapore.