Broadcom Eyes Blockbuster $100 Billion Acquisition Of Chipmaker Qualcomm
According to sources for Bloomberg, the offer could come as early as this weekend. Qualcomm is a dominant force in the red hot mobile sector, with its Snapdragon processors powering the majority of Android devices sold today. In addition, the company's LTE modems are also used in Android smartphones and tablets and in certain models of Apple's iPhone and iPad. Qualcomm also is sitting on a patent goldmine relating to technologies that make cellular connectivity possible for today;s wireless devices.
However, sharks began circling as Qualcomm's spat with Apple has escalated over the past year. Qualcomm has not only come under attack from Apple, but it has been hit with penalties for antitrust violations abroad. Ahead of today's announcement of a possible bid from Broadcom, QCOM shares were down 16 percent so far this year.
Talk of a Broadcom takeover of Qualcomm comes at a time when the former is already in the process of a $5.5 billon deal to acquire Brocade Communications Systems and the latter is looking to close a $38 billion deal with NXP Semiconductors.
According to one report, Broadcom will offer roughly $70 a share, which would be through a combination of stock and cash. This would value a potential sale at over $100 billion. QCOM shot up nearly 13 percent today after the news first broke.