Broadcom is mulling $100B bid to buy chip giant Qualcomm

04 November, 2017, 00:53 | Author: Patty Aguilar
  • People crowd into the Qualcomm booth to view a series of new products during the annual Consumer Electronics Show

Semiconductor giant Broadcom is exploring a possible acquisition of $80 billion Qualcomm, according to a Bloomberg News report citing people familiar with the matter.

Fresh off its plan to move to the United States, the semiconductor firm is weighing a $100 bln bid for rival Qualcomm, Bloomberg reported.

Broadcom is speaking to advisers about the potential deal, said the people, who asked not to be identified because talks are private. Qualcomm shares opened at $54.76 but shot up more than 12% on the news, valuing the company at roughly $91 billion. Broadcom fell slightly to trade up about 1 per cent, for a market valuation of $107-billion. Qualcomm is looking to complete a $40 billion acquisition of NXP Semiconductors, while Broadcom has a $5.5 billion offer for Brocade Communications that it is waiting to complete.

A tie-up between Broadcom and Qualcomm could help alleviate the damage from that battle, however. The Wall Street Journal quickly confirmed the news in its own report.


Formerly known as Avago Technologies, Broadcom Limited was created past year after Singapore-based Avago acquired Broadcom Corporation for $37 billion. It is now incorporated in Singapore and co-headquartered there and in San Jose, California. Reports surfaced this week that Apple was considering eschewing Qualcomm chips entirely in its iPhones and iPads beginning next year in what would a major blow for the San Diego-based chipmaker.

At issue are the licensing fees that Qualcomm charges for patents that cover the basics of how mobile phone systems work. The two companies are already among the top 10 providers of chips in an industry that's consolidating rapidly.

With the introduction of the iPhone 7 and iPhone 7 Plus, Apple brought in Intel for its LTE chips and there have been rumors that the iPhone manufacturer might also bring in MediaTek to bring an end to the business relationship with Qualcomm.

Recommended:

  • 'StarCraft II' Will Soon Be Available to Play for Free

    'StarCraft II' Will Soon Be Available to Play for Free

    Those with a desire for competition can unlock the ranked ladder for free simply by playing and winning games. All you have to do to unlock it permanently is earn 10 First Wins of the Day in Unranked or Versus A.I. play.
    Open enrollment under the Affordable Care Act begins

    Open enrollment under the Affordable Care Act begins

    "Confusion seems to be one of the key words to describe what we're facing now", said Nicolas Moriello, a Delaware-based broker. The IRS has said it will start rejecting returns filed in 2018 that don't indicate whether the taxpayer had health insurance.
    Taxi plows pedestrians in London

    Taxi plows pedestrians in London

    Photographs on social media showed a black taxi on the pavement behind orange roadworks barriers outside the Jubilee Market Hall. Four people were injured in the incident, with three taken to hospital and a fourth treated at the scene, paramedics said.
  • Selena Gomez and The Weeknd He Did the Breaking Up

    Selena Gomez and The Weeknd He Did the Breaking Up

    The stars are spotted attending American Music Awards on November 20, 2011 in Los Angeles , California. The rekindled friendship comes at the same time as Selena's split with The Weeknd .
    'Are They Trying to Silence Me?' Rose McGowan Responds to Arrest Warrant

    'Are They Trying to Silence Me?' Rose McGowan Responds to Arrest Warrant

    At the time , the Charmed star did not elaborate on why the warrant had been issued or what crime she had been accused of. I have been slut-shamed. "I have been harassed", McGowan said.
    Netflix suspends House Of Cards production amid Kevin Spacey scandal

    Netflix suspends House Of Cards production amid Kevin Spacey scandal

    He went on to state: 'That said, I take reports of such behavior seriously and this is no exception. But Netflix had already chose to end the show and was pursuing a spinoff.
  • Bitcoin price shatters record by reaching $7000 for the first time

    Bitcoin price shatters record by reaching $7000 for the first time

    It's fair to say that even the most optimistic bitcoin fans will have seen the currency rise beyond their expectations this year. These are just a few and widely varying, examples of where the bitcoin's value could head to in the next decade.
    At least 2 killed, 1 injured in shooting at Thornton, Colo. Walmart

    At least 2 killed, 1 injured in shooting at Thornton, Colo. Walmart

    Mountain Time, the Thorton Police Department confirmed that two men are dead and one woman was wounded and taken to the hospital. Thornton police say 47-year-old Scott Ostrem was arrested Thursday morning, about 14 hours after he fled the store in a auto .
    Panthers trade Kelvin Benjamin to the Bills

    Panthers trade Kelvin Benjamin to the Bills

    Conditions were never officially revealed so it's unknown if the Bills will have their seventh round pick in the draft. Benjamin, 26, brings a welcome size element and physical presence to Buffalo's receiving corps at 6-5 and 245 pounds.
  • Actress Paz de la Huerta alleges Weinstein raped her twice

    Actress Paz de la Huerta alleges Weinstein raped her twice

    The Manhattan district attorney's office has a senior prosecutor assigned to investigate de la Huerta's rape claims, AP reported. Her allegations come after more than 50 women have accused Weinstein of sexual harassment and abuse .
    SC refuses interim stay on linking of Aadhaar to mobiles, bank accounts

    SC refuses interim stay on linking of Aadhaar to mobiles, bank accounts

    A constitutional bench is examining whether Aadhaar is a violation of the right to privacy. And today the Supreme Court to hear the petitions against the Aadhaar Card validity.
    Spanish judge jails eight ousted Catalan ministers

    Spanish judge jails eight ousted Catalan ministers

    In the text, the dismissed regional ministers are called "the legitimate government of Catalonia". The former Catalan ministers have been accused of sedition, rebellion and misusing public funds.


Popular

Syrian army frees eastern city from ISIS, state media says
The battle has been ferocious, with heavy Russian air strikes and Syrian artillery fire leaving much of the city in ruins. The commander added that Iraqi forces have also established control over the nearby Al-Qaim border crossing.

Marseille confirm ´immediate layoff´ for Evra after clash with fans
Evra was subsequently sent off by the referee before the game had even started. Evra is likely to face a lengthy ban for the incident.

Three people shot, one dead in shooting at Chicago Starbucks
The victim, identified by police as Sauvignon Watkins, 28, of Chatham, ran into the Starbucks at Lawrence and Broadway. A 12-year-old boy suffered a gunshot wound to the groin and was being treated at Ann & Robert H.

In latest lawsuit, Qualcomm accuses Apple of leaking its software to Intel
Apple responded to this, saying that the company had tried to negotiate before suing and that Qualcomm is abusing its position. This access was "unprecedented", according to Qualcomm , but Apple insisted it was necessary and Qualcomm agreed.

37.8 million Kidde fire extinguishers recalled; one death reported
The Consumer Product Safety Commission has recalled various makes and models of Kidde fire extinguishers with plastic handles. Note: This recall includes fire extinguisher models that were previously recalled in March 2009 and February 2015 .

Former Trump campaign adviser denies encouraging aide on Russian Federation dealings
Papadopoulos, of Novi, has the misfortune of a distinctive name that's shared with a former adviser of President Donald Trump . The court filings recount Papadopoulos' meetings overseas starting in March 2016, after he'd been named to Trump's board.

Tesla delays Model 3 volume production amid biggest-ever quarterly loss
That was well below the $2.45 a share deficit that a consensus of industry analysts had forecast, according to Thomson Reuters. Last month, Tesla reported it delivered 26,150 vehicles in the third quarter, a 4.5 percent rise on the same period of 2016.

Nintendo's Legendary Black Friday Deals
The package comes with the green 2DS, AC adapter, and The Legend of Zelda: Ocarina of Time 3D pre-installed. It's possible this version will be limited in supply since it retails at the same price as the game does.

Driver Killed By 12-Year-Old Jumping From Overpass Was Towson Grad
Her father, Patrick Harris , said that she was an outgoing person and had a fondness for the outdoors, particularly hiking. She was "caring, compassionate and genuine", Jackson-Cherry said. "I've been hearing from her classmates all day".

Trevor Siemian's job in jeopardy
Lynch started two games as a rookie last season and went 1-1. "That's his job as the quarterback". You can't win when you turn the ball over five times".