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Broadcom may acquire Qualcomm

By Michael Low & Cookie Monster - on 6 Nov 2017, 10:15am

Broadcom may acquire Qualcomm

Broadcom might announce a plan to acquire Qualcomm as early as today, according to three Reuters' sources. One source claimed that Broadcom is still deciding on the bid, and the offer could range from US$70 to US$80 per share. At US$70 per share, an acquisition of Qualcomm could cost US$103 billion, which would make it the biggest technology acquisition in history. Broadcom is said to be working with five financial banks to offer the cash component for the bid. 

However, the sources said that Qualcomm is not aware of the details about Broadcom's bid, and it is not known whether Qualcomm will even entertain this deal. Both companies declined to comment on the matter. 

“It’s a smart move that would make Broadcom into a tech juggernaut,” said GBH Insights analyst Daniel Ives.

If the report is true, Broadcom will be in a better position to grab more businesses in the smartphone industry. Qualcomm supplies radio modems and mobile platforms to phone makers such as Apple and Samsung, while Broadcom is also a major supplier of Wi-Fi chips. In addition, both companies possess patent portfolios in wireless communications that are mainly adjacent to each other. This could raise the stakes for Intel, who is trying to gain more ground in the same market.

Source: Reuters .