Broadcom had announced earlier this month that they would be making a final offer on Qualcomm, and it looks like the offer has since been rejected, with Qualcomm claiming that the new proposal “materially undervalues” the company’s assets. They also mention in a letter to Broadcom that their proposal doesn’t take into account the value of their NXP acquisition and also the resolution of certain licensing disputes.
The letter reads in part, “Your proposal ascribes no value to our accretive NXP acquisition, no value for the expected resolution of our current licensing disputes and no value for the significant opportunity in 5G. Your proposal is inferior relative to our prospects as an independent company and is significantly below both trading and transaction multiples in our sector.”
While this could be Broadcom’s final bid, Qualcomm doesn’t seem to be completely closed off to the idea. The company has since proposed a meeting to see whether they will be able to address “serious deficiencies in value and certainty” in Broadcom’s bid.