The company said its offer of 70 dollars per share represents a 28 percent premium over the closing price of Qualcomm's common stock on November 2, 2017, the last unaffected trading day prior to media speculation regarding a potential transaction, and a premium of 33 percent to Qualcomm's unaffected 30-day volume-weighted average price. Based on the price consisting of 60 dollars in cash and 10 dollars per share in Broadcom shares, the purchase was estimated worth 130 billion dollars.
"The combination of the two companies could generate strong synergies and create a dominant wireless business and overall powerful global semiconductor leader", said Mike Walkley, an analyst at Canaccord Genuity told Bloomberg, which broke the story. Still from these sources, it is said that Qualcomm CEO Steven Mollenkopf has spent the past few days soliciting feedback from Qualcomm shareholders. The deal would dwarf Dell Inc.'s $67 billion acquisition of EMC in 2015 - then the biggest in the technology industry.
But whether Broadcom is willing to make an offer Qualcomm can't refuse still isn't clear. If it does sell to Broadcom, it means the combined businesses' chips will be present in more than a billion smartphones sold every year.
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Buying Qualcomm would reshape the chipmaking industry, transforming Broadcom into the third-largest semiconductor maker, behind Intel Corp. and Samsung Electronics Co. Nevertheless, all signs are pointing up for Qualcomm, given the potential for a higher bid from Broadcom.
"Qualcomm shareholders are likely to hold out for more, but we believe something in the $80-ish range is likely enough to bring majority around", Stacy Rasgon, an analyst at Sanford C. Bernstein wrote in a note published over the weekend. "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". However, according to sources it's likely to reject the offer according to sources, as it doesn't feel it's representative of the value of the company or the people in it.