Computer chipmaker, Broadcom announced a major bid for its rival technology company, Qualcomm. The size of bid, which comes in at $103bn, has made it the largest offer made in a takeover in the industry.
Broadcom specializes in manufacturing chips utilized in a myriad of products including personal data keepers like computers and smartphones.
The company has now decided to expand its shores and take over software maker Qualcomm. Broadcom has offered to pay $70 for each of Qualcomm’s shares. The offer is certainly one of the best the technology industry has ever witnessed.
Interestingly, Qualcomm itself is in deep waters at the moment. The company is currently engaged in a bitter legal battle over royalty payments with Apple.
Apple has recently leveled accusations against Qualcomm, stating the company has charged them for services they didn’t perform. The ensuing legal battle has left Qualcomm in a bit of a lurch.
Qualcomm is yet to comment on Broadcom’s bid to take over its holdings. However, they may still have some time to spare. Broadcom is currently in the process of obtaining approval on its bid to buy Brocade. Qualcomm itself is in talks to take over NXP Semiconductors.
Surprisingly enough, Broadcom has declared that its offer to purchase Qualcomm stands regardless of its $38bn investment in NXP Semiconductors.
Speaking of the offer, Broadcom’s president and CEO, Hock Tan stated that the transaction would “position” the combined company as a “global communications leader”. He added that it would have “an impressive portfolio of technologies and products”. Broadcom was confident that the acquisition would be met favorably by users.
Broadcom is currently on the rise after it announced its plans to fully move its company to the United States. The announcement has brought it into favor with many powerful people, including, the President of the United States.