It was reported over the weekend that component manufacturer Broadcom was thinking about making a bid for Qualcomm. The latter hasn’t put itself up for sale so any bid that it proposed would be an unsolicited one. That’s precisely what the company has done today. Broadcom has made its unsolicited bid for Qualcomm public today and it’s above what many were expecting. It’s bidding $130 billion for Qualcomm.
“We would not make this offer if we were not confident that our common global customers would embrace the proposed combination,” said Broadcom CEO Hock Tan, adding that this deal is compelling for stockholders and stakeholders in both companies.
Broadcom is offering Qualcomm a cash and stock deal that values it at $70 per share, that’s a 28 percent premium compared to the closing price of Qualcomm’s stock on November 2nd.
Stockholders would receive $60 in cash and $10 per share in Broadcom shares, valuing the proposed acquisition at a whopping $130 billion. Previous reports suggested that the bid would be around $100 billion.
If Qualcomm agrees to the takeover, the combined entity would become the third largest chip manufacturer in the world, behind only Samsung and Intel.
Whether or not Qualcomm will accept the bid is another matter entirely. It’s going to be a while before Qualcomm makes a final decision on this matter.