Qualcomm stock jumps on reported Broadcom interest

Qualcomm stock jumps on reported Broadcom interest

Qualcomm stock jumps on reported Broadcom interest

Broadcom Ltd (AVGO.O) is planning an unsolicited bid for smartphone chipmaker Qualcomm Inc (QCOM.O) with an offer possible as soon as this weekend, a source familiar with the matter said on Friday.

Fresh off its plan to move to the United States, the semiconductor firm is weighing a $100 bln bid for rival Qualcomm, Bloomberg reported.

Broadcom representatives are reportedly speaking with advisers regarding a potential deal. No final decisions have been made and there's no guarantee a deal will go ahead.

It's also unclear what such a deal would mean for Qualcomm's current bid of almost $40 billion to purchase NXP Semiconductors, a deal that's facing stiff regulatory reviews in Europe and opposition from some investors who contend the bid undervalues NXP. Broadcom's stock also rose on the report, adding $14.13 or 5.45% to $273.63.


The saga kicked off almost a year ago, in January 2017, when Apple first filed a lawsuit against Qualcomm for allegedly abusing its market position to extract more money from hardware manufacturers.

Broadcom, created in 2016 when Avago Technologies Ltd. acquired then-Broadcom Corp. for $37-billion, said this week it will return its headquarters to the US from Singapore.

Qualcomm and Broadcom declined comment on the reports from Bloomberg and the Wall Street Journal, but Broadcom Chief Executive Hock Tan has a history of aggressively acquiring companies to bolster his company's growth. Broadcom, created in 2016 when Avago Technologies Ltd. acquired then-Broadcom Corp. for $37 billion, has built itself from a former division of Hewlett Packard into one of the industry's largest chipmakers via a string of purchases. Even though Qualcomm's component is considered to be the best, Apple is trying to get back at the company for various patent and legal issues. Regulators are still reviewing Qualcomm's $38.1 billion proposed acquisition of NXP Semiconductors for $38.1 billion.

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