Qualcomm rejected another merger proposal with Broadcom

12 February 2018

Last year it became known that Broadcom could buy Qualcomm. The first offer seemed not generous enough for the Snapdragon processor manufacturer. It was followed by the second one, which was also not accepted by the board of directors of Qualcomm for the same reason.

Recall that initially Broadcom offered about $103 billion for the purchase of Qualcomm. Then, after the first refusal, this amount was increased to $ 121 billion. But even this did not help to reach an agreement. According to the company's management, the potential buyer significantly undervalues Qualcomm, and also offers insufficient compensation of $8 billion in case the deal is very likely to be derailed by regulators.

Despite the fact that Qualcomm's board of directors unanimously decided again to reject the deal, the company's management said it was ready to return to discussing the merger on more favorable terms. However, Broadcom is unlikely to offer a new price, because the last offer to buy Qualcomm for $121.39 billion, or $82 per share, was called "the best and final". Time will tell whether the American chipmaker will change its decision.