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Broadcom Offers Largest-ever Technology Deal of US$121 Billion to Acquire Qualcomm

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Published on : Feb 06, 2018

Broadcom has been said to crack one of the largest technology deals if the acquisition of Qualcomm goes through. Reportedly, the company has improved its final acquisition offer for Qualcomm from a US$70.0 to US$82.0 per share and with a bid of about US$121.0 billion. The previous offer had Qualcomm to be valued at a US$105.0 billion with a net debt of US$25.0 billion. Should the deal see completion, Hock Tan, Broadcom CEO, would increase his prospects of making it to Qualcomm’s board. This offer may cause Qualcomm to feel the pressure to accept the improved deal.

Broadcom as World’s Third Largest Chipmaker after Intel and Samsung Electronics?

With the new deal in place, Broadcom has potentially positioned itself to rank third only after Intel and Samsung and become one of the largest chipmakers worldwide. Market analysts foresee the potential Broadcom-Qualcomm combination to rule the business and suddenly become the default provider of certain components required to manufacture a billion smartphones sold almost every year. The Broadcom-Qualcomm acquisition deal has been anticipated to eclipse the purchase of EMC by Dell for a US$67.0 billion in 2015, which was the biggest at the time.

However, Qualcomm has been said to see itself much brighter as a standalone company. Furthermore, it has stated that it’s on the cusp of making an entry into new product markets. On the other hand, the company has been battling legally with Apple over accusations of failing to pay for quarterly rebates and charging unfair royalties.