If this pathbreaking deal gets into reality, the group company would be the third-largest chipmaker in the world
This is being confirmed from the chipmaker Broadcom that they are working to bid acquire Qualcomm by over 130Billion $ Deal. This is going to be pathbreaking industrial deal to watch in coming time.
Broadcom is offering a combination of cash-and-stock deal of $70 per share for Qualcomm, representing a 28 percent premium over the closing price of Qualcomm’s stock on November 2nd. The $130 billion offer includes $25 billion in assumed debt.
The proposed deal is going to be a very big milestone for the $300 billion semiconductor industry. The moves have been motivated by high-level shifts in modern tech. Computing power has migrated from PCs to smartphones and, while faster mobile data networks promise to bring more internet-connected devices online — from self-driving cars to smart washing machines.
Broadcom’s bid for Qualcomm seems to make their coworking portfolio in a broader. The California-based Broadcom provides designs for different IP in the area of Wi-Fi and Bluetooth IPs, as well as industrial infrastructure products, but they could not catch the bus on the designing IPs that can take advantage of the spread of 4G and 5G networks.
“Broadcom needs LTE and 5G capability that they don’t have today,”
But, the deal is not so simple to happen. That deal is undergoing fine regulatory scrutiny in Europe as well as objections from other shareholders, who are claiming that the company valuation is reduced. The offering the money is only the first step. But this will be very interesting to observe on the progress of the deal in coming future.