Chipmaker Broadcom plans blockbuster bid for Qualcomm

Qualcomm headquarters

Broadcom is considering a bid of more than $100 billion for Qualcomm, according to people familiar with the matter, in what would be the biggest-ever takeover of a chipmaker.

The value of Broadcom's bid has not been decided, though an offer in the range of around US$70 to US$80 per share is being contemplated, one of the sources said. The deal price was later confirmed by sources of CNBC.

Qualcomm declined to comment. Broadcom, created in 2016 when Avago Technologies Ltd. acquired Broadcom Corp. for $37 billion, has built itself from a former Hewlett Packard division into one of the largest chipmakers via a string of purchases.

Qulacomm has announced a $47 billion acquisition of Dutch rival NXP, a deal which is the subject of an European Union antitrust inquiry.

Stockholders could be the reason for this jump in the price but the reason why they might be going through with this plan is that Qualcomm is now in a legal dispute with Apple, who has been a long-term client of the chipmaker for its modem business.

Arsenal's Santi Cazorla targets January return after coming close to amputation
He underwent left knee surgery in December 2015 and needed another operation a year later because of a tendon injury in his right foot.

Broadcom is also a major supplier to numerous same companies for Wi-Fi chips. The company's modem chips have been used by Android manufacturers and by Apple since the very first iPhone.

Broadcom is worth about $109 billion, while Qualcomm is worth about $82 billion at the time of the reports.

With its profits plummeted more than 90 percent in the latest earnings call, Qualcomm could be fighting a losing legal battle with Apple, giving Broadcom the flawless opportunity to acquire the chipmaker in what could be the largest chip business acquisition ever. Shares of NXP fell 2 per cent and Brocade slipped 2.6 per cent. A legal battle with Apple is costing revenue and jeopardizing a business model that for years made Qualcomm one of the most successful chipmakers.

Antitrust officials, who also would have to approve a Broadcom-Qualcomm deal, are still considering Qualcomm's purchase of NXP.

Both firms have been in the news the last few days. Qualcomm shares opened at $54.76 but shot up more than 12% on the news, valuing the company at roughly $91 billion.

Related news:

Hot News

isis-killer-beheading-video-story-top Taylor Swift: 'Call It What You Want' Stream, Lyrics & Download
Nov 04, 2017 - 01:22
One week before we can listen to the whole Reputation album , the fourth single is here and it makes you want to bob your head. The song is not as catchy as " Ready For It ", but it may have the best lyrics written for the new album so far.

isis-killer-beheading-video-story-top Thomas jobless rate jumps to 6.3% in October
Nov 04, 2017 - 01:21
US labor reports for October were released Friday, and the numbers were slightly better than what was initially expected. The agency said the number of full-time positions swelled by 88,700, while part-time employment dropped by 53,400 jobs.

isis-killer-beheading-video-story-top BJP, Congress demand 'ban' on 'Padmavati' ahead of Gujarat elections
Nov 04, 2017 - 01:12
The period drama starring Deepika Padukone , Ranveer Singh and Shahid Kapoor has been facing flak from various communal groups. As expected, the party has denied the allegation that it is raising the issue because of the upcoming elections in Rajasthan.

isis-killer-beheading-video-story-top Hillary Clinton Laments 'New Cold War' During Book Signing In Chicago
Nov 03, 2017 - 01:15
Hillary Clinton has told Republicans to stop being, like, so obsessed with her. But Fox News' Sean Hannity isn't ready to give up the GOP's favorite target.

isis-killer-beheading-video-story-top NC reports first 2 flu deaths of the season
Nov 03, 2017 - 01:11
Every year, the flu is estimated to cause millions of illnesses, said California Department of Public Health (CDPH) officials. After that experience, she said she gladly gets vaccinated. "As someone gets older their immune system changes", she says.

isis-killer-beheading-video-story-top Ellen Degeneres' Show Outed Channing Tatum As a Stripper to His Dad
Nov 03, 2017 - 01:10
Meanwhile, Channing also admitted that he was in trouble with another member of his family at the moment - his daughter Everly .

isis-killer-beheading-video-story-top China vetoes United Nations move on Azhar
Nov 03, 2017 - 01:09
On Thursday, the country rejected the move stating "there is no consensus" on Masood Azhar's role in terror attacks in India. Another defence expert, Kamal Mitra Chinoy said that China is using Masood Azhar to help Pakistan put pressure on India.

isis-killer-beheading-video-story-top On Not Being Scared of a Halloween Attack
Nov 03, 2017 - 01:07
The parade, which is open to anyone in a costume, started in 1973 with a puppeteer marching with his family. Sand trucks will be rolled out along the route before the 7pm kickoff time for the parade.

isis-killer-beheading-video-story-top Pizza Company Blames NFL Controversy On Slumping Sales
Nov 02, 2017 - 01:12
Nielsen ratings were down 5% for the first eight weeks of the current season from the same period in 2016, and down 18.7% from 2015.

isis-killer-beheading-video-story-top Jahlil Okafor asks 76ers to buy him out or trade him
Nov 02, 2017 - 01:11
But at the same time, that's what teams were offering. "But that's where we stand today because you waited so long to trade me". Now Sixers reporter Keith Pompey of Philly.com says the Celtics would be a likely landing spot for Okafor if he is bought out.

isis-killer-beheading-video-story-top Fiery exchanges as politicians scold Facebook, Google and Twitter
Nov 02, 2017 - 01:10
It was shown in Facebook users' feeds nearly 35,000 times and was clicked on 6,000 times. A member of the House intelligence committee is challenging Facebook on its diversity.

isis-killer-beheading-video-story-top Fatal Pileup Outside Of Toronto Shuts Down Highway After Massive Fire
Nov 02, 2017 - 01:08
Schmidt said the crash sent fuel spilling down the highway and described the blaze as "rolling down the highway". The crash occurred just before 11:30 p.m., causing a massive fire and several explosions. "I'm still shaking.

isis-killer-beheading-video-story-top Woman 'killed 17 family members in bid to poison husband'
Nov 02, 2017 - 01:08
Bibi was forced to marry a man chosen by her family in September but she already had a boyfriend, identified only as Shahid. A Pakistani bride is making worldwide headlines after being charged with the poisoning of her husband and his family.

isis-killer-beheading-video-story-top Tesla Reports Its Largest Quarterly Loss in Q3 Earnings Report
Nov 02, 2017 - 01:07
North Star Investment Management Corp. raised its position in shares of Tesla by 2.8% in the 2nd quarter. The stock's 50-day moving average price is $350.92 and its 200-day moving average price is $341.49.

isis-killer-beheading-video-story-top Super Mario Run Fails To Meet Nintendo's Expectations
Nov 01, 2017 - 01:11
In November we'll get Animal Crossing: Pocket Camp , a free-to-play game that looks pretty heavy with micro-transactions. The projected sales for the console's first fiscal year are higher than the Wii U's entire time on the market.