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Qualcomm rejects Broadcom's second offer to buy the company

Qualcomm logo during CES 2018
Qualcomm logo during CES 2018 (Image credit: Android Central)

Ever since early November of last year, there have been talks of Broadcom being interested in acquiring chip-maker Qualcomm. The deal was turned down by Qualcomm's Board of Directors later that same month, but a report quickly followed this up suggesting that Qualcomm would reconsider its decision if Broadcom offered more money.

Broadcom recently came back to Qualcomm with a new offer of $121 billion ($16 billion more than the initial $105 billion), but even so, Qualcomm continued to refuse the deal.

Qualcomm says that the $121 billion "materially undervalues" its worth, and this is essentially the same response the company gave when it rejected Broadcom's first offer. However, while this is good news for the time being, there's still the potential that Qualcomm will eventually sell.

It's reported that Qualcomm is willing to meet with Broadcom to try and get a price that it deems itself to be worthy of, so if Broadcom continues to offer more cash, we may be looking at a buyout.

Stay tuned, folks.

Broadcom buying Qualcomm could grind innovation to a screeching halt

Joe Maring was a Senior Editor for Android Central between 2017 and 2021. You can reach him on Twitter at @JoeMaring1.

16 Comments
  • Wow we, how do you turn down a deal like this. Is Qualcomm really worth that kind of money. For myself I couldn't get to the bank fast enough! Yikes!
  • It's not only about their worth now. They are looking at their growth potential in the immediate future - especially with 5G tech on the Horizon. If I were them, I'd have the same attitude. I wouldn't even take a call for an offer less than 150 Billion.
  • Take the deal.
  • I'm thinking this is about to go hostile next. If Qualcomm continues to play hardball, time to take the case directly to the Shareholders.
  • You are correct.
  • Yes, seems like a great deal.
  • No means no broadcom, have some respect.
  • Heating up.
  • 🍿
  • Good! I hope, Qualcomm stands steadfast! This deal would only create a monopoly and raise prices.
  • I really hope this merger doesn't happen. It won't be good for competition.
  • Will Broadcom really not innovate if they bought out Qualcomm? Or is that a matter of opinion? If that is the case then I wouldn't want them to buy Qualcomm either. I would want processors to be better and evolve over time. I'll hold my judgement until it actually happens.
  • Opinion, but based on other projects and IP Broadcom has purchased. Broadcom can innovate and have done plenty. It's also a pretty good company to work for from what other people are saying. But it can and will sit on existing tech until there is no more money to be made from it. That's great for stockholders, not so great for consumers ready for the next generation of whatever that thing might be.
  • Sitting on tech longer = supporting chips longer = more software updates?
  • Just think of Intel before AMD released Ryzen. I think Broadcom isn't much better than Intel when it comes to R&D investment.
  • Sigh! Only Qualcomm would turn down a mega deal like that.