Qualcomm unanimously rejects Broadcom’s bid for $130 billion
Over the last few weeks, there have been rumblings and then a confirmation that Broadcom was looking to purchase Qualcomm for approximately $130 billion. At the time, it was reported that Qualcomm was not accepting offers and was recommending that its shareholders reject the offer, as it would likely be held up by regulators.
As of today, Qualcomm has officially confirmed that it will not be accepting Broadcom’s offer, stating that the offer “significantly undervalues Qualcomm relative to the company’s leadership position in mobile technology and our future growth prospects.” This rejection does not come as any surprise as the offer itself came from left field and was seemingly unsolicited.
After stating its reasons for rejecting the offer, Qualcomm then took a different approach, stating the following:
“No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry. We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G,”
While Qualcomm continues to deal with regulatory fines and has entered into a new legal battle against Apple in China, it seems that the company has no plans to be “bought-out”. Let us know what you think about this potential buy-out in the comments below, and if you think there’s any chance Qualcomm sees offers from other companies.
[Qualcomm]