Broadcom has said it would prefer amicable negotiations, but a person familiar with Chief Executive Hock Tan's thinking believes he would be willing try to elect directors to Qualcomm's board who will favor the deal. The deal offered Qualcomm shareholders $60 a share, plus $10 in Broadcom stock for each share of Qualcomm.
Qualcomm builds chips for carrier networks, allowing them to offer end clients broadband and mobile data. That's no small amount of money, and it would have ranked as the tech industry's largest acquisition ever.
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But sources said talks between the government and AT&T are ongoing in the hopes that an agreement can be reached. Representatives of Twenty-First Century Fox , AT&T and Time Warner, CNN's parent, declined comment.
U.S. semiconductor and telecommunications firm Qualcomm rejected a $103bn takeover bid from competitor Broadcom on Monday, saying the offer "dramatically" underestimated the value of the company. A combination with Broadcom would not have propelled it past industry leaders Intel and Samsung.
Singapore-based Broadcom made the offer last week in what would have consolidated two major players in the booming sector fueled by growth in smartphones and other connected devices.
Paul Jacobs, Executive Chairman and Chairman of the Board of Qualcomm states the following in regards to the decision taken by the chipmaker.
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Despite this decline, it still came in above analysts' revenue estimate of $2.74 billion for the third quarter of the year. The stock has a market capitalization of $975.73, a price-to-earnings ratio of 6.28 and a beta of 0.53.
Overall, Broadcom's bid is a very ambitious attempt to grow its share of the market for components that go into mobile phones.
Shares of Qualcomm rose as much as 2.5 percent to $66.17, while those of Broadcom fell as much as 1.3 percent to $261.55.
After this response from Qualcomm, we are yet to hear Broadcom's reaction.
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The bid takes advantage of Qualcomm's weakened position after a year marred by conflicts with Apple Inc. over its patent royalty fees and worldwide regulators alleging anticompetitive business practices. "With a more extensive item broadening and a more noteworthy scale, the joined endeavor will be in the position to offer all the more mechanically propelled semiconductor answers for the organization's worldwide customers and lift investor esteem", he included.