×
You will be redirected back to your article in seconds

Tech Mega-Merger: Chip Maker Broadcom Wants to Buy Qualcomm for $105 Billion

Chip maker Broadcom has made an unsolicited offer to buy its rival Qualcomm for $105 billion. The acquisition would be the biggest tech deal to date, and turn Broadcom into the world’s number 3 chip maker behind Intel and Samsung. However, Qualcomm is reportedly going to rebuff the offer, arguing that it undervalues the company. This could set the stage for a proxy fight.

Broadcom officially announced its intention to buy Qualcomm Monday morning, saying that it is willing to pay $70 per share in cash and stock for Qualcomm. That’s 28 percent above Qualcomm’s November 2 closing price. Bloomberg had first reported about Broadcom weighing an offer on November 3, leading its stock to skyrocket.

Both Broadcom and Qualcomm are best known for their mobile chips, which are found in virtually any modern smart phone. The two companies directly compete on some fronts, but have been developing a lot of complementary technology as well. Qualcomm has been making processors for most modern Android phones, including Google’s new Pixel 2 and Samsung’s Galaxy S8.

Broadcom is perhaps lesser-known, but the company’s chips still power key functionality in most modern phones. For instance, a recent tear-down of Apple’s new iPhone X revealed that the device uses Broadcom chips for wireless charging and for its touch-screen controls.

The timing for the merger is no accident: Qualcomm has been engaged in a bitter legal fight with Apple over licensing fees for its chip technologies. Qualcomm has been arguing that Apple hasn’t been paying enough for licensing its intellectual property, but Apple has countered that it has been overcharged by Qualcomm.

Qualcomm has been asking courts to ban the sales of iPhones in a number of territories to put pressure on the phone maker. Apple has countered by stopping all royalty payments to Qualcomm. The chip maker’s stock price has been severely impacted by the legal battle, making it a potential take-over target.

 

More Digital

  • Nancy Pelosi

    Facebook on Defensive Over Fake Pelosi Video

    Facebook faced growing criticism this week over its decision not to remove a video that was doctored to suggest that House Speaker Nancy Pelosi was intoxicated during a recent public event. The video, which has been viewed more than 2.5 million times, had been slowed down notably, giving the impression that Pelosi was slurring her [...]

  • Little-Black-Mirror-Maia-Mitchell

    Netflix Launching 'Little Black Mirror' Video Series Starring Maia Mitchell, Lele Pons, Rudy Mancuso, Juanpa Zurita and More

    To promote next month’s premiere of “Black Mirror” season 5, Netflix is launching a short video series — “Little Black Mirror,” with a cast that includes an ensemble of Latinx social-media stars. The three “mini-stories,” aimed at Spanish-speaking audiences, are inspired by the tech-dystopian universe of Charlie Brooker and Annabel Jones’ anthology series. “Little Black [...]

  • Twitter

    Twitter Permanently Bans Anti-Trump Krassenstein Brothers, Who Deny They Broke Platform's Rules

    Twitter permanently suspended the accounts of Ed and Brian Krassenstein — progressive political activists famous for trolling Donald Trump and his supporters — with the company alleging the brothers used bogus accounts to amplify their reach on the platform. “The Twitter Rules apply to everyone,” a Twitter rep said in a statement. “Operating multiple fake [...]

  • Snapchat

    Snap in Talks to License Music to Let Snapchat Users Embed Songs in Posts

    Snap wants to up Snapchat’s music game. The company has been in negotiations with music companies including the big three — Sony Music Entertainment, Universal Music Group and Warner Music Group — to license song catalogs for the Snapchat app, according to two industry sources familiar with the talks, confirming a Wall Street Journal report. [...]

  • T-mobile - Netflix - John Legere

    T-Mobile Passes Netflix Price Hike Through to Subscribers

    T-Mobile is getting ready to raise prices for subscribers who have taken advantage of its “Netflix On Us” promotion: The mobile carrier will begin charging existing customers who have participated in the promotion an additional $2 per month to account for Netflix’s recent price increase. Consumers will see their bill go up starting on 6/2. [...]

  • Oona King

    Snap Hires Google Exec Oona King as First VP of Diversity and Inclusion

    Snap continues to fill out the ranks of its revamped leadership team: The Snapchat parent tapped Oona King, most recently Google’s director of diversity strategy and a former member of British Parliament with the Labour Party, as its first VP of diversity and inclusion. King, who starts at Snap on June 11, is also the [...]

More From Our Brands

Access exclusive content