Broadcom is reportedly moving forward with its attempt to purchase chipmaker Qualcomm, by increasing its bid for the company to about $121 billion and $82 per share, described as a "final offer." The new offer comes three months after Broadcom's first bid for Qualcomm, originally valued at about $105 billion ($70 per share), plus $25 billion of net debt (via Bloomberg).

If the acquisition goes through it would still be considered the "largest-ever technology deal," although Qualcomm's board previously rejected the first offer and is said to have "dug in" against threats of potential hostile takeovers. With the increased offer, Broadcom now hopes to put pressure back on Qualcomm to accept the deal and "improve prospects" for Broadcom CEO Hock Tan to be nominated to Qualcomm's board should the deal go through.

broadcom qualcomm

Broadcom Ltd. has raised its bid for Qualcomm Inc. to about $121 billion, in an attempt to force what could be the largest-ever technology deal. The new offer of $82 a Qualcomm share will be Broadcom’s final offer, according to a statement Monday. The deal would take the form of $60 in cash and the remainder in Broadcom shares.

Broadcom’s hostile bid for the larger San Diego-based company is the latest and most audacious move by Tan in a string of deals that have made his company one of the world’s largest suppliers of semiconductors. He wants Qualcomm for its leading smartphone modem chip division, an example of what he calls a “franchise” that will continue to dominate.

If completed, 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.

Qualcomm is said to be pushing back against such acquisition offers because it see its own future to be "much brighter as a standalone company," further stating that it's "on the cusp" of entering new product markets. At the same time, Qualcomm has been in a legal battle with Apple for over a year now, after Apple accused Qualcomm of charging unfair royalties for "technologies they have nothing to do with" and failing to pay for quarterly rebates.

Throughout the lawsuits, Apple eventually considered removing Qualcomm modems from its devices altogether moving forward, and the latest report from KGI Securities analyst Ming-Chi Kuo pointed towards Intel-only modems for the 2018 iPhones.

Top Rated Comments

whyamihere Avatar
45 months ago
"The deal would take the form of $60 in cash and the remainder in Broadcom shares."

My goodness, how on earth can they turn down 60 dollars in cash up front! Maybe I should offer a crisp $100 bill!
Score: 3 Votes (Like | Disagree)
ke-iron Avatar
45 months ago
Qualcomm better sell, when all their high profile customers leave for the opposition, they will be left in the dust and forced to downsize and eventually file bankruptcy. Remember that chip maker or something like that who got too comfortable with Apple? Apple let them know years in advance that they were going to stop using their products and they didn’t take them seriously. I can’t remember the exact story but Apple is leaving Qualcomm things will be going downhill from there.
Score: 2 Votes (Like | Disagree)
thisisnotmyname Avatar
45 months ago
With various regulatory attention they're getting recently, US suppliers (Apple certainly but others have made their opinions known as well) seemingly unhappy with them, and their China strategy rumored to face headwinds with China's desire not to have them establish a monopolistic position I'm surprised any increase was offered. There's a lot of IP there but that landscape changes relatively quickly and their former business practices are under fire globally. Broadcom obviously has people looking at this much more deeply than I but I'm still surprised.
Score: 2 Votes (Like | Disagree)
makr Avatar
45 months ago
Qualcomm better sell, when all their high profile customers leave for the opposition, they will be left in the dust and forced to downsize and eventually file bankruptcy. Remember that chip maker or something like that who got too comfortable with Apple? Apple let them know years in advance that they were going to stop using their products and they didn’t take them seriously. I can’t remember the exact story but Apple is leaving Qualcomm things will be going downhill from there.
Yeah Imagination Technologies https://en.wikipedia.org/wiki/Imagination_Technologies
Score: 1 Votes (Like | Disagree)
thisisnotmyname Avatar
45 months ago
Yeah Imagination Technologies https://en.wikipedia.org/wiki/Imagination_Technologies
The same could be said for the group manufacturing sapphire that had all their eggs in one basket, invested heavily in capacity for expected Apple demand, then folded dramatically when Apple didn't meet the expected demand. I know there's a second side to that story with Apple having quite demanding contracts to achieve the capacity regardless of whether Apple fully utilized or not but the fact remains, having a significant portion of your business (which is generally 10%+ even though I believe in some of these examples Apple was far higher) is a large risk.
Score: 1 Votes (Like | Disagree)

Top Stories

nothing ear 1 buds 1

Nothing 'Ear (1)' True Wireless Earbuds Launch to Take on AirPods Pro With ANC and Unusual Design for $99

Tuesday July 27, 2021 7:57 am PDT by
Nothing, a new brand from OnePlus founder Carl Pei, has today officially launched the "Ear (1)" true wireless earbuds after months of anticipation around the company's AirPods Pro rival. The Ear (1) features an in-ear design, Active Noise Cancelation, Bluetooth 5.2, IPX4 water resistance, and a charging case with Qi-compatible wireless charging and a USB-C port. Fast pairing is supported on...
iOS 14 on iPhone feature emergency

Apple Releases iOS and iPadOS 14.7.1 With Fix for Touch ID Apple Watch Bug

Monday July 26, 2021 9:48 am PDT by
Apple today released iOS and iPadOS 14.7.1, minor bug fix updates that come just a week after the release of iOS 14.7, software that introduced new Apple Card features and support for the MagSafe Battery Pack. The iOS and iPadOS 14.7.1 updates can be downloaded for free and the software is available on all eligible devices over-the-air in the Settings app. To access the new software, go to...
iPad mini pro feature 2

iPad Mini 6 to Feature 8.3-Inch Display With No Home Button and Narrower Bezels

Monday July 26, 2021 12:26 pm PDT by
The sixth-generation iPad mini that's in the works will have an 8.3-inch display, according to display analyst Ross Young. That will be larger than the current 7.9-inch display, with the larger size due to the removal of the Home button and a narrower bezel design. Rumors about the iPad mini 6 have been picking up in recent weeks ahead of its prospective launch this fall. Apple analyst...
iphone 12 pro gold

Report: iPhone 14 Pro Models to Feature Tough Titanium Alloy Chassis

Monday July 26, 2021 1:12 am PDT by
Next year's "iPhone 14" series is expected to feature high-end models with a new titanium alloy chassis design, claims a new investors report by JP Morgan Chase. According to the report, the use of titanium alloy will be one of the biggest changes to the case design in the 2022 iPhone series, and Foxconn will be the exclusive manufacturer of the titanium frames for the high-end models....
iOS 15 General Feature Purple

Everything New in iOS 15 Beta 4: Safari Tweaks, MagSafe Battery Pack Support, Notification Updates and More

Tuesday July 27, 2021 11:47 am PDT by
Apple today released the fourth betas of iOS 15 and iPadOS 15, introducing additional refinements to the new features that are coming in the software updates. In these betas, Apple has introduced changes for Safari, Notifications, Focus mode, and more. Safari Updates Apple is continuing to refine the design of Safari on the iPhone, and in iOS 15, there are tweaks to improve usability. ...
apple mac business page

Apple Shares 11 Reasons Why Business Users Should Choose Macs

Monday July 26, 2021 11:35 am PDT by
Apple today updated its Apple at Work website with a new section dedicated to the Mac, which offers up 11 reasons why "Mac means business." On the webpage, Apple highlights the M1 chip as the number one reason why business users should choose a Mac, offering up an M1 overview [PDF] that explains the benefits of the M1 chip. The information isn't new, but it does provide a look at all of...
imac with accessories

Larger Redesigned High-End iMac Rumored to Launch Next Year

Monday July 26, 2021 3:45 am PDT by
Apple's larger redesigned iMac will arrive sometime in 2022 rather than later this year, according to the leaker known as "Dylandkt." On Twitter, Dylandkt claimed that Apple's "high end iMac" is not expected to release in the fourth quarter of 2021 alongside Apple's "M1X Macs" – a reference to Apple's redesigned MacBook Pro models – because "Apple simply does not want their devices to...
General iOS 14

iOS 14.7.1 and macOS Big Sur 11.5.1 Patch Security Vulnerability That May Have Been Actively Exploited

Monday July 26, 2021 11:55 am PDT by
Apple today released unexpected iOS 14.7.1 and iPadOS 14.7.1 updates to the public, and according to a newly released support document, the software addresses a serious security vulnerability that may have been exploited in the wild. Apple says that an application may have been able to execute arbitrary code with kernel privileges due to a memory corruption issue. "Apple is aware of a report ...
apple bitcoin hack

Is Apple Really Buying Bitcoin?

Monday July 26, 2021 3:07 am PDT by
A large number of websites and posts on social media are stoking rumors that Apple has purchased $2.5 billion worth of bitcoin in the company's first move into cryptocurrency, but is there any validity to the claims? Many people are citing the fact that Apple was looking for a Business Development Manager with experience in alternative payments, including cryptocurrency, earlier this year as ...
new m1 chip

Tim Cook on Apple Deciding to Manufacture Components: 'We Ask Ourselves If We Can Do Something Better'

Tuesday July 27, 2021 3:04 pm PDT by
During today's earnings call for the third fiscal quarter of 2021 (second calendar quarter), Apple CEO Tim Cook was asked how Apple decides what components to purchase and what components to develop, and Cook said that Apple asks if it can be done better. We ask ourselves if we can do something better. If we can deliver a better product. If we can buy something in the market and it's great...