Qualcomm categorically rejects Broadcom’s ‘unsolicited’ takeover offer
When Broadcom made an unexpected and “unsolicited” offer to acquire rival semiconductor giant Qualcomm last week, the $130 billion proposal, including $25 billion of debt, was deemed “compelling for stockholders and stakeholders in both companies.”
Clearly, Qualcomm’s Board of Directors disagrees with Broadcom’s management on what constitutes a mutually beneficial deal, reaching the swift, unanimous and predictable conclusion that the takeover bid “significantly undervalues Qualcomm relative to the company’s leadership position in mobile technology and our future growth prospects.”
CEO Steve Mollenkopf is confident in his and his team’s “ability to create significant additional value for our stockholders as we continue our growth” in the mobile, IoT, automotive, edge computing and networking segments within the semiconductor industry.
Qualcomm also expects to “lead the transition to 5G” with some of the world’s fastest, most innovative cellular modems, not to mention the company’s clear domination of the Android smartphone SoC market.
There’s also the issue of a drawn-out NXP acquisition attempt by Qualcomm itself, which may never go through, further harming the financial strength of the company currently valued at a little under $100 billion.
Qualcomm obviously “neglected” to touch on those two delicate subjects in a brief statement on its official website, but argued that a potential deal would come with “significant regulatory uncertainty” of its own in addition to Broadcom’s idle attempt to get its business at a bargain price.