Following a report last week that stated Broadcom was "exploring" the possibility of buying Qualcomm, which has made LTE chips for Apple's iPhone line for many years, today Bloomberg reports that this offer is moving forward. Broadcom has offered to acquire Qualcomm for $70 per share in cash and stock, in a transaction valued at a total of $130 billion. If completed, it would be marked as "the largest technology acquisition ever."

Through the deal, Broadcom would become the third-largest chipmaker in the world, behind Intel and Samsung Electronics, and the combined Broadcom-Qualcomm business would "instantly become" the default provider of certain components required to build more than one billion smartphones sold every year. The acquisition would eclipse Dell's $67 billion purchase of EMC in 2015, considered at the time the biggest in the technology industry.

broadcom qualcomm

“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. “We would not make this offer if we were not confident that our common global customers would embrace the proposed combination.’’

In the midst of the acquisition news, Qualcomm and Apple have been embroiled in a legal battle since January after Apple sued Qualcomm for $1 billion. Apple accused Qualcomm of charging unfair royalties for "technologies they have nothing to do with" and failing to pay for quarterly rebates. As the disagreement escalated throughout 2017, with a new lawsuit emerging just last week, Apple is said to be considering eliminating Qualcomm chips from its devices completely moving forward.

However, through a newly combined Broadcom-Qualcomm company, which could bring about new management, analyst Stacy Rasgon pointed out that the acquisition could finally "smooth things over" between Apple and Qualcomm.

If Broadcom can pull off a deal, it could help smooth things over with Qualcomm’s biggest adversary. A change of management at Qualcomm might help resolve the dispute with Apple more quickly, according to Sanford C. Bernstein & Co. analyst Stacy Rasgon.

Broadcom also said that its offer stands whether or not Qualcomm completes its pending acquisition of NXP Semiconductor, which is currently facing regulatory scrutiny in Europe and resistance from NXP shareholders. Following the signing of a definitive agreement, Broadcom said it expects the proposed deal to be completed "within approximately 12 months."

Update 11/13: Qualcomm has rejected Broadcom's offer, stating the following in a press release: "It is the Board's unanimous belief that Broadcom's proposal significantly undervalues Qualcomm relative to the Company's leadership position in mobile technology and our future growth prospects."

Top Rated Comments

Porco Avatar
100 months ago
They could rename themselves Broadqualcomcomm :D
Score: 7 Votes (Like | Disagree)
JPack Avatar
100 months ago
One would imagine Apple and Broadcom have exchanged comments on this already. Apple is probably pushing this behind the scenes. Status quo for Tim's Style. :apple:
More likely a mutual agreement by Qualcomm and Broadcom.

Qualcomm has 5G patents, while Broadcom wants wireless but had to exit the 5G market because they couldn’t cut it. Broadcom knows the future involves infrastructure, which is under attack from competitors like Huawei. They know they can’t fight Huawei alone.
Score: 3 Votes (Like | Disagree)
Glideslope Avatar
100 months ago
Interesting wonder if this would have any bearing on the lawsuit?
One would imagine Apple and Broadcom have exchanged comments on this already. Apple is probably pushing this behind the scenes. Status quo for Tim's Style. :apple:
Score: 3 Votes (Like | Disagree)
Jax44 Avatar
100 months ago
Would this be a de facto monopoly for LTE chips?.
Score: 2 Votes (Like | Disagree)
Carnegie Avatar
100 months ago
Interesting wonder if this would have any bearing on the lawsuit?
I think this would tend to help to resolve matters between Qualcomm and Apple sooner. I don't mean to suggest that the ongoing legal battles would be settled overnight, they could still drag on for some time - even years. But this would, I suspect, remove a major impediment to Qualcomm and Apple reaching a broad agreement regarding their relationship moving forward. That impediment is Qualcomm's need (or, at least, perceived need) to posture in order to support its stock price and possibly in order to help it with future legal battles that it anticipates.

As it is, a large part of Qualcomm's business model - which has worked so well for a number of years - has already been torn apart. It knows that it won't be able to hold on to or recapture it. There were a number of linchpins in its chain of improper practices which worked together to allow it to, in effect, maintain a stranglehold on the industry and extort higher levels compensation for its IP and products than it otherwise would have been able to get. (Holy mixed metaphors, Batman!). A number of those linchpins have already been fatally damaged by, e.g., actions taken by various regulatory bodies. So the chain just isn't, and won't be, able to function as intended anymore.

Perhaps the most important linchpin was Qualcomm's ability to withhold certain kinds of modems, which it had an effective monopoly with regard to, unless industry players agreed to its extortive licensing terms (which covered more than just the IP related to those particular modems). That ability is now gone, because of regulatory actions and because industry players (read: Apple) finally got enough leverage (or courage) to stop complying. In the past, they might not have been able to break that hold because it would have effectively meant not being able to make certain kinds of mobile phones. Qualcomm had the leverage and used it in combination with a number of other improper practices to unilaterally impose terms. Those days are gone. Regardless of what happens as a result of other regulatory body investigations and in various ongoing legal battles, Qualcomm won't be able to put that genie back in the bottle. And it knows that, as does the rest of the industry.

Settling the details in the aftermath of Qualcomm's business model being torn asunder is another matter though. Various parties can continue to fight over those details for a long time. Qualcomm is, for the most part, wrong in the legal positions it's taken in these disputes. What's more, I think it knows that it's wrong when it comes to a number of those legal positions. But its actions of late have largely not been about winning the legal fights, they've been about what I suggested earlier - posturing. Qualcomm has been fighting a PR battle relating to investor sentiment, hoping to mitigate the damage to its stock price. (Though it has also been looking for any legal leverage it might be able to find in hopes of, eventually, being able to force a somewhat better deal for itself.)

If Broadcom acquires Qualcomm, that should remove the need for Qualcomm to posture. It should be easier for Broadcom to reach agreements with Apple and perhaps others. Broadcom no doubt understands that what Qualcomm was doing will no longer work - it will no longer be allowed (e.g. by regulators) and the leverage needed to impose it doesn't exist to the extent it used to. And Broadcom won't be as handcuffed by the past (and its own prior practices) in trying to reach deals for how things will work going forward.
Score: 2 Votes (Like | Disagree)
cube Avatar
100 months ago
I was having trouble at work looking up broad.com

...off to HR, again!
I was thinking the new name could be qualbroad.com
Score: 2 Votes (Like | Disagree)

Popular Stories

iphone 16 pro models 1

Here's How the iPhone 17 Pro Max Will Compare to the iPhone 17 Pro

Saturday July 5, 2025 1:00 pm PDT by
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year. As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro to Reverse iPhone X Design Decision

Monday July 7, 2025 9:46 am PDT by
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year. In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
imac video apple feature

Apple Launching These 15+ Products Later This Year

Sunday July 6, 2025 8:05 am PDT by
The calendar has turned to July, meaning that 2025 is now more than half over. And while the summer months are often quiet for Apple, the company still has more than a dozen products coming later this year, according to rumors. Below, we have outlined at least 15 new Apple products that are expected to launch later this year, along with key rumored features for each. iPhone 17 Series iPho...
iOS 26 Feature

Everything New in iOS 26 Beta 3

Monday July 7, 2025 1:20 pm PDT by
Apple is continuing to refine and update iOS 26, and beta three features smaller changes than we saw in beta 2, plus further tweaks to the Liquid Glass design. Apple is gearing up for the next phase of beta testing, and the company has promised that a public beta is set to come out in July. Transparency In some apps like Apple Music, Podcasts, and the App Store, Apple has toned down the...
iPhone Car Key Kia

Here's Which Vehicles Offer iPhone Car Keys

Sunday July 6, 2025 3:03 pm PDT by
In 2020, Apple added a digital car key feature to its Wallet app, allowing users to lock, unlock, and start a compatible vehicle with an iPhone or Apple Watch. The feature is currently offered by select automakers, including Audi, BMW, Hyundai, Kia, Genesis, Mercedes-Benz, Volvo, and a handful of others, and it is set to expand further. Apple has a web page with a list of vehicle models that ...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 14 New Features

Friday July 4, 2025 1:05 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are just over two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:Apple logo repositioned: Apple's logo may have a lower position on the back of the iPhone 17 Pro models, compared to previous...
iphone 17 pro render majin bu

New iPhone 17 Pro Renders Highlight Apple Logo and MagSafe Design Changes

Sunday July 6, 2025 8:43 pm PDT by
New renders today provide the best look yet relocated Apple logo and redesigned MagSafe magnet array of the iPhone 17 Pro and iPhone 17 Pro Max. Image via Majin Bu. Several of the design changes coming to the iPhone 17 Pro model have been rumored for some time, such as the elongated camera bump that spans the full width of the device, with the LiDAR Scanner and flash moving to the right side. ...
iPhone 14 Pro Dynamic Island

iPhone 17 Models Rumored to Feature Redesigned Dynamic Island

Monday July 7, 2025 7:38 am PDT by
iPhone 17 models will feature a redesigned Dynamic Island user interface, according to a post today from Digital Chat Station, an account with more than three million followers on Chinese social media platform Weibo. The account has accurately leaked some information regarding future Apple products in the past. The account did not share any specific details about the alleged changes that are ...
Prime Day 25 Feature Warm Triad

The Best Prime Day Deals on AirPods, iPads, MacBooks, and More

Monday July 7, 2025 10:55 am PDT by
Amazon is back with its annual summertime Prime Day event, lasting for four days from July 8-11, the longest Prime Day yet. As it does every year, Prime Day offers shoppers a huge selection of deals across Amazon's storefront. With the event now underway, we're tracking numerous all-time low prices on Apple gear right now. Note: MacRumors is an affiliate partner with Amazon. When you click a...