Broadcom Willing to Offer an Irresistible $120 Billion to Take Over Qualcomm
Previously, it was reported that Broadcom had offered $100 billion for a Qualcomm acquisition which would have become the biggest in history if everything had gone according to plan. Unfortunately, in the developing story phase, it was reported that Qualcomm had refused the offer because it undervalued the SoC manufacturer. Well, Broadcom does not appear to be giving up anytime soon because it is back and with an even bigger offer than before.
Broadcom Previously Offered $70 Per Share - Sources Claim That the Offer Has Now Gone up to the $80-$82 ‘Per Share’ Range
According to industry sources, Broadcom believes that the deal could be completed within 12 months the moment both parties reach an agreement. Unfortunately, nothing is as simple as these giants envision because, for every foreign acquisition, the U.S. regulatory officials check every nook and cranny to see whether the takeover would be going against the best interests of the country.
Even if the deal does not go through, Qualcomm will receive something from it thanks to a higher breakup fee. According to the details, Broadcom is ready to offer Qualcomm a higher breakup fee, which is normally between 3-4 percent of the total acquisition offer, which in this case is $120 billion.
Broadcom’s tenacity is not without reason. Acquiring Qualcomm would give the wireless chip manufacturer access to advanced 5G wireless networking technology and it would be able to deploy this technology at a much faster pace compared to its rivals. Qualcomm currently has an unrivaled market in the LTE manufacturing game, with Apple being one of its major clients and Intel playing catch up.
The SoC maker also successfully demonstrated a 5G data connection on a smartphone that featured a 5G modem, so the time frame as to when we’ll be seeing actual phones touting ultra-fast download and upload speeds is not going to be long. Plus, with Broadcom being one of Apple’s chief suppliers, it might also calm down both Qualcomm and the iPhone manufacturer in terms of their continuing legal struggles.
Do you think the $120 billion offer is going to go through this time? Tell us down in the comments.
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