Last year, Broadcom made an offer to buy out Qualcomm – the chipset maker that is behind the genius of Snapdragons. However, that deal fell through with QUALCOMM feeling the offer did not do well to justify its worth. Now, Broadcom has brought the bid up, but Qualcomm is still refusing to sell for the same reasons.
Initially setting the buying price at $70 per share, Broadcom has now offered to pay $12 more, bringing the total to $82 per share. This, they plan to pay with $60 in cash per share and $22 in Broadcom shares.
On the back of this recent refusal, Broadcom has stated that this would be their ‘best and final offer’ to the chip maker. That could be true, but considering the pull Qualcomm has on the mobile chipset market, the former company might be willing to offer even more in the future.
Qualcomm, for one, thinks that the value and worth evaluation plan of Broadcom does not take into consideration their recent purchase of Semiconductors NV for $38 billion, considerably driving the price further higher.
Likewise, Qualcomm is concerned that should they be willing to sell, but the sale be blocked by US Authorities, they might not be able to recover from the aftermath. Not only would the reputation of the chipset maker be destroyed, but they might lose a lot in cash and other financial standings too.
To force the move, a proxy fight could be initiated by the board members of both companies. That would see the board of directors over at Qualcomm vote for Broadcom’s candidates, who would in turn vote to accept the standing deal at $82 per share. Until that happens, or another agreement is reached, both companies would continue to remain separate entities.
