The chip manufacturer Broadcom is proposing a $130 billion deal to purchase Qualcomm in what would be one of the biggest tech mergers in history. Rumors of the acquisition started popping up yesterday, and the offer will likely kick off a pitched battle between the two companies and regulators around the world. According to reports people involved with Broadcom believe that it will not shy away from initiating a "proxy fight to gain seats on Qualcomm's board of directors in support of its offer". Qualcomm apparently isn't happy with the offer, with Bloomberg saying that Qualcomm thinks the deal "undervalues the company".
To acquire Qualcomm, the world's largest maker of mobile-phone chips, Broadcom would pay a 28 percent premium over the stock's closing price on November 2, before Bloomberg first reported talks of a deal.
The tie-up would represent the largest technology acquisition ever. Broadcom has said, however, that its offer stands irrespective of whether the NXP deal goes through or not. Here's a wrap of what they've said so far. In part this might be inspired by Qualcomm's pending release of the Centriq family of processors seeing as how Broadcom cancelled their ARM based server chip development earlier this year.
"Broadcom management comments about "confidence that our common global customers would embrace the proposed combination" could mean that the company has had discussions with large OEMs like Apple and Samsung".
"This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products", Hock Tan, resident and chief executive officer of Broadcom, said in a statement Monday.
Tan visited President Trump at the White House last week to announce that Broadcom would be moving its headquarters from Singapore to Delaware.