Broadcom is pursuing a hostile takeover of Qualcomm, securing 'up to' $100 billion in...

By Polycount ยท 4 replies
Feb 12, 2018
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  1. One of Qualcomm's major competitors, Broadcom, has been trying to woo them into an acquisition for quite some time. Back in November, Broadcom sent Qualcomm an unsolicited $105 billion purchase offer. Qualcomm was quick to reject the proposal with the company's Board of Directors saying it dramatically undervalues the company.

    Earlier this month, Broadcom gave Qualcomm their "best and final" offer of $121 billion. Though GBH analyst Daniel Ives said Qualcomm's Board would have a "tough decision" on their hands, the Board rejected that offer as well, once again saying it undervalued the company significantly. Instead, Qualcomm proposed a meeting with Broadcom to persuade them to raise their bid.

    Unfortunately, the former may have pushed their luck too far. VentureBeat now reports Broadcom has secured "up to" $100 billion in debt to pursue a hostile takeover of the rival chip company. Broadcom aims to bypass Qualcomm's Board of Directors entirely and appeal directly to the company's shareholders through a vote early in March.

    To fund this takeover, Broadcom has sourced credit from 12 different financial bodies, including Wells Fargo, Citigroup, J.P. Morgan and others.

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  2. GeforcerFX

    GeforcerFX TS Evangelist Posts: 776   +303

    So Broadcom is gonna take on over 4 times there value in debt to buy a company that is twice there size, that seems like a really great idea!!(sar). That will end with either apple, google, amazon, Microsoft buying the decimated remains of the bankrupt company that is the result of this in 5-6 years(or less). I could also see the major tech company's pushing the FTC to deny them the merger as they would prob want them competing for there business dropping prices for them.
     
    JaredTheDragon likes this.
  3. Uncle Al

    Uncle Al TS Evangelist Posts: 4,092   +2,584

    ROFLMAO .... boy's just can't take "no" for an answer, so they will go broke getting what they want, the market will drop into a lull and we'll see them tank this time next year ...... brilliant corporate strategy!
     
  4. Jyrkz

    Jyrkz TS Enthusiast Posts: 61   +36

    Hostile take over is never a good idea
     
  5. frostyshield

    frostyshield TS Booster Posts: 78   +73

    Pretty sure $100Billion would be faaar better spent on R&D which could potentially blow Qualcomm out of the water in the future.
     

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