Not so long ago, it became known that Broadcom may buy Qualcomm. Many have already begun to anticipate the formation of a new technological giant, comparable to Intel and Samsung, but these hopes are not destined to come true. At least, not yet.
It seems that the amount of the deal proposed by Broadcom representatives did not impress Qualcomm's board of directors. This was the reason for the unanimous decision to reject the deal. One of the chairmen of the board of directors, Paul Jacobs, also noted that Broadcom significantly underestimates the company's position in the mobile market and its growth prospects.
Recall that in its official offer, Broadcom valued each Qualcomm share at $70, of which $60 was to be paid in cash and the remaining $10 in company securities. The total deal, therefore, could reach $130 billion, which would be the largest single acquisition in the technology field.
It is worth adding that Broadcom has not yet commented on the situation and are likely to consider putting forward a more generous offer. However, as noted by representatives of Qualcomm, the deal in any case may not be approved by regulators for antitrust reasons.