Qualcomm unequivocally rejects Broadcom's advances
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About a week ago, Broadcom presented a proposal that would see it buy Qualcomm shares at a stunning price of US$70 per share, to make for a whopping US$130 billion deal in total. Today, the Qualcomm Board of Directors has unanimously rejected the unsolicited proposal.
A press release published on the company's official website a few hours ago established the stances of various company executives on the matter.
Paul Jacobs, Executive Chairman and Chairman of the Board of Qualcomm Incorporated:
"It is the Board’s unanimous belief that Broadcom’s proposal significantly undervalues Qualcomm relative to the Company’s leadership position in mobile technology and our future growth prospects.”
Steve Mollenkopf, CEO of Qualcomm Incorporated:
“No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry. We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G.”
Tom Horton, Presiding Director of Qualcomm Incorporated:
“The Board and Management are singularly focused on driving value for Qualcomm’s shareholders. After a comprehensive review, conducted in consultation with our financial and legal advisors, the Board has concluded that Broadcom’s proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty. We are highly confident that the strategy Steve and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer.”
Qualcomm has been involved in a lengthy lawsuit with Apple, and there was speculation that a potential takeover by Broadcom would see a conclusion to it but that doesn't look likely at the moment. Considering Qualcomm's importance to the Android ecosystem, we expect this decision is one that puts smiles on the faces of fans, as a deal between both parties could potentially disrupt the OS's growth for the worse.
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