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Utopia Talk / Politics / Broadcom's Hostile Takeover of Qualcomm
Hot Rod
Revved Up
Wed Mar 07 19:28:45

"The Committee on Foreign Investment in the United States (CFIUS), a national security panel that can stop mergers that could harm U.S. security, in an unusual move, stepped into Singapore-based Broadcom’s hostile takeover bid for Qualcomm this week, citing a number of concerns on the development of the next generation of mobile networks and technology."




Broadcom's higher bid for Qualcomm would put one chip company in many smartphones

Mike Snider, USA TODAY

Published 9:36 a.m. ET Feb. 5, 2018 | Updated 4:54 p.m. ET Feb. 5, 2018


The potential biggest-ever tech deal, one that would create the world's third-largest maker of chips in smartphones, computers and other devices, just got bigger.

Broadcom is sweetening its offer to acquire Qualcomm for more than $121 billion. This comes three months after Broadcom made an initial $103 billion offer to combine the two semiconductor giants.

A combined company would touch consumers' communication patterns in a multitude of ways. Qualcomm's chips are in iPhones, Android smartphones and new "always-on" Windows laptops. Broadcom makes chips in Android smartphones and iPhones, too, as well as game systems, set-top boxes and data centers.

The combined company, which would generate about $51 billion in annual revenue, also stands to be a global tech player in the deployment of 5G, the next generation of mobile technology. 5G wireless networks promise Internet connections 10 to 100 times faster than current networks and are expected to improve connectivity for smartphones and tablets and home broadband networks, as well as self-driving cars and an endless lineup of other devices.

As in the previous offer, Broadcom would acquire all outstanding shares of Qualcomm for $60 per share in cash. But this new approach includes $22 per share in Broadcom stock, where the previous offer was $10. That $60 offer is a 50% premium over Qualcomm stock's closing price on Nov. 2, 2017.

The deal, which amounts to $148.9 billion including debt Broadcom would assume, would be the largest-ever technology acquisition, according to Dealogic. The largest deal to date: Dell's acquisition of EMC for about $65 billion.

This proposal, which represents Broadcom's final offer, "includes substantially more Broadcom stock, which will allow Qualcomm stockholders a greater opportunity to participate in the upside created by the combined company's strategic and operational advantages," Broadcom CEO Hock Tan said in a letter sent to Qualcomm, which was made public.

Broadcom (AVGO) gave up gains to fall 3% amid a broad market sell-off. Qualcomm (QCOM) shares fell 6.6%.

In a statement, Qualcomm said its board would review the proposal "to determine the course of action it believes is in the best interests of the Company and its stockholders."

The board unanimously rejected the earlier offer, saying it "dramatically undervalues Qualcomm and comes with significant regulatory uncertainty, and therefore is not in the best interests of Qualcomm stockholders.

Broadcom maintained its willingness to do the deal regardless of the outcome of Qualcomm's ongoing effort to acquire NXP Semiconductors. San Diego-headquartered Qualcomm made its $38 billion bid in October 2016 for Dutch-based NXP, a major provider of global automotive semiconductor sales.

Broadcom currently has twin corporate headquarters in San Jose and Singapore, which came from Singapore-based chipmaker Avago Technologies' takeover last year of Broadcom, whose name it took. But in November, Broadcom CEO Tan said the company would move its headquarters to Delaware.

That move would likely help in regulatory approval of this deal and its $5.5 billion bid it made last year for data center-connectivity company Brocade.

A deal could also, some Wall Street analysts say, help smooth over legal squabbles between Apple and Qualcomm.

The two companies have been battling over how much Apple owes in licensing fees to Qualcomm. Apple has been withholding fees until the courts determine the amount, a process that could take several years. Earlier this year, Qualcomm sought to block iPhone shipments to the U.S., arguing that the phones infringe on six of its patents.


http://www...re-than-121-billion/306382002/

Hot Rod
Revved Up
Wed Mar 07 19:33:57

But, where do all of the secrets go?

Hot Rod
Revved Up
Thu Mar 08 13:51:34

This is huge.

China will own the third largest chip maker in the world and it will supply much of America's chips.
The claim the main office will move to the US, but I will believe that when I see it. And how many secret doors will be in the chip.



And this is an unusual step for CFIUS to step into the fray this early.


"The Committee on Foreign Investment in the United States (CFIUS), a national security panel that can stop mergers that could harm U.S. security, in an unusual move, stepped into Singapore-based Broadcom’s hostile takeover bid for Qualcomm this week, citing a number of concerns on the development of the next generation of mobile networks and technology."

Paramount
Member
Thu Mar 08 17:31:54
”Broadcom's higher bid for Qualcomm would put one chip company in many smartphones

The potential biggest-ever tech deal, one that would create the world's third-largest maker of chips in smartphones, computers and other devices, just got bigger.”



One Chip to rule them all, One Chip to find them,
One Chip to bring them all and in the darkness bind them.
Hot Rod
Revved Up
Thu Mar 08 18:26:11

This is as big as what is going on in Korea but in a different way of course.

Asgard
Member
Fri Mar 09 04:58:20
HR, this is from February.
Hot Rod
Revved Up
Fri Mar 09 05:47:34

Yes, about one month ago? Do you now think it is a done deal or do you think it is still a serious threat to The United States along with the rest of The West?

Personally, I think it is a serious threat and I sincerely hope it is blocked.

Paramount
Member
Fri Mar 09 06:03:45
I don’t know why you are worried, Hot Rod. If you got nothing to hide then I’m sure that you have nothing to worry about.
Hot Rod
Revved Up
Fri Mar 09 10:56:03

sigh!

Hot Rod
Revved Up
Tue Mar 13 04:28:09

GOOD NEWS!!!!!

President Trumpblocked this deal yesterday for National Security Reasons.


All of you should thank him for that.

American Democrat
Member
Tue Mar 13 06:47:02
Right, yet Trump will not do anything against Russia due to National Security Reasons.
Hot Rod
Revved Up
Tue Mar 13 06:58:53

Doing nothing against Russia is his National Security reason.

American Democrat
Member
Tue Mar 13 07:33:47
That makes no sense Hot Rod.
American Democrat
Member
Tue Mar 13 07:35:40
To add, this isn't about him. It is about the national security of the U.S.
Hot Rod
Revved Up
Tue Mar 13 08:12:20

His policy against Russia is about the same as Reagan.

He is breaking their Bank.

American Democrat
Member
Tue Mar 13 08:21:48
Again no substance to what you've said. He has been critical of Pres. Obama in regards of not doing enough. And Pres. Trump has done very little or nothing. Especially ignoring sanctions that passed.
Hot Rod
Revved Up
Tue Mar 13 08:31:11

He is supplying fuel to Europe.

That is about the only hard currency that Russia had incoming.

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