Qualcomm disappointed by Broadcom's 'inadequate' shrinking package

Snapdragon giant confirms: Size really does matter


Qualcomm has told Broadcom to – and this is a technical term, here – go screw itself after Broadcom cynically lowered its per-share buyout offer to the Snapdragon chipset designer.

Yes, that's right, after months of aggressively eying up Qualcomm as an acquisition target, Broadcom on Wednesday reduced what it was willing to pay to gobble its prey.

Citing Qualcomm's efforts earlier this week to up its bid for Dutch semiconductor company NXP, Broadcom cut the amount it would cough up per Qualcomm share from $82 apiece to $79.

"Broadcom believes that a responsible Qualcomm board could have preserved value by following ISS's clear recommendation to work with Broadcom on the NXP transaction and negotiate the sale of Qualcomm to Broadcom," Broadcom said in its statement, with ISS being its financial advisor.

"Instead Qualcomm's board acted against the best interests of its stockholders by unilaterally transferring excessive value to NXP's activist stockholders. Despite this direct value transfer, Broadcom remains committed to delivering a value-maximizing offer to Qualcomm stockholders."

Broadcom said that should the NXP deal fall through, it would re-up its buyout offer to $82 per share.

Jack Russell in love photo via Shutterstock

Qualcomm rejects Valentine's Day takeover love-in with Broadcom

READ MORE

Qualcomm was not impressed with Broadcom's attempt at gamesmanship: it immediately issued a statement slamming Broadcom's lowered offer.

"Broadcom’s reduced proposal has made an inadequate offer even worse despite the clear increase in value to Qualcomm stockholders from providing certainty around the NXP acquisition," Qualcomm said.

"Broadcom has refused and continues to refuse to engage with Qualcomm on price."

This latest turn after weeks of wrangling between the boards of Qualcomm and Broadcom over the latter's efforts to acquire the former. Broadcom has made clear it wants to tap into Qualcomm's strong position in the mobile CPU and cellular broadband chip markets by snapping up Qualcomm, while Qualy's management has countered that they can become more valuable by going it alone.

The matter could be decided by shareholders on March 6, when Qualcomm's board of directors will stand for reelection. Should they be replaced with Broadcom cronies, the new board would likely move to accept the Broadcom deal.

Right now, Qualcomm shares are trading well below Broadcomm's offer price, at $63.59. ®

Broader topics

Narrower topics


Other stories you might like

  • Stolen university credentials up for sale by Russian crooks, FBI warns
    Forget dark-web souks, thousands of these are already being traded on public bazaars

    Russian crooks are selling network credentials and virtual private network access for a "multitude" of US universities and colleges on criminal marketplaces, according to the FBI.

    According to a warning issued on Thursday, these stolen credentials sell for thousands of dollars on both dark web and public internet forums, and could lead to subsequent cyberattacks against individual employees or the schools themselves.

    "The exposure of usernames and passwords can lead to brute force credential stuffing computer network attacks, whereby attackers attempt logins across various internet sites or exploit them for subsequent cyber attacks as criminal actors take advantage of users recycling the same credentials across multiple accounts, internet sites, and services," the Feds' alert [PDF] said.

    Continue reading
  • Big Tech loves talking up privacy – while trying to kill privacy legislation
    Study claims Amazon, Apple, Google, Meta, Microsoft work to derail data rules

    Amazon, Apple, Google, Meta, and Microsoft often support privacy in public statements, but behind the scenes they've been working through some common organizations to weaken or kill privacy legislation in US states.

    That's according to a report this week from news non-profit The Markup, which said the corporations hire lobbyists from the same few groups and law firms to defang or drown state privacy bills.

    The report examined 31 states when state legislatures were considering privacy legislation and identified 445 lobbyists and lobbying firms working on behalf of Amazon, Apple, Google, Meta, and Microsoft, along with industry groups like TechNet and the State Privacy and Security Coalition.

    Continue reading
  • SEC probes Musk for not properly disclosing Twitter stake
    Meanwhile, social network's board rejects resignation of one its directors

    America's financial watchdog is investigating whether Elon Musk adequately disclosed his purchase of Twitter shares last month, just as his bid to take over the social media company hangs in the balance. 

    A letter [PDF] from the SEC addressed to the tech billionaire said he "[did] not appear" to have filed the proper form detailing his 9.2 percent stake in Twitter "required 10 days from the date of acquisition," and asked him to provide more information. Musk's shares made him one of Twitter's largest shareholders. The letter is dated April 4, and was shared this week by the regulator.

    Musk quickly moved to try and buy the whole company outright in a deal initially worth over $44 billion. Musk sold a chunk of his shares in Tesla worth $8.4 billion and bagged another $7.14 billion from investors to help finance the $21 billion he promised to put forward for the deal. The remaining $25.5 billion bill was secured via debt financing by Morgan Stanley, Bank of America, Barclays, and others. But the takeover is not going smoothly.

    Continue reading

Biting the hand that feeds IT © 1998–2022