Attack and counterattack. Failed negotiations and revised proposals. Statements on top of statements. The grand chess game between semiconductor giants Broadcom and Qualcomm is probably set to continue for a while longer, but unsurprisingly, the prospective buyer’s latest move makes a successful takeover conclusion even less likely than way back in November.
That’s because Qualcomm strongly believes its proposed NXP acquisition, which is just one regulatory hurdle away from global clearance, would provide “significant strategic benefits” to the San Diego-based chipmaker.
In a nutshell, Qualcomm is deemed “far more valuable with NXP than without”, an opinion Broadcom categorically dismissed just yesterday. In the Irvine-based semiconductor company’s view, Qualcomm’s value declined when an extra $4.10 per share was transferred to NXP stockholders to help seal the deal.
Consequently, Broadcom “made an inadequate offer even worse”, according to Qualcomm’s most recent press release, while retaining a “long and highly uncertain path to regulatory approvals.”
The largest potential acquisition in tech history could still go through against the wishes of Qualcomm’s current board of directors, but unless Broadcom sweetens its bid again, perhaps going back to its “best and final offer” from a few weeks ago, a hostile takeover also seems doubtful, to say the least.