Broadcom Ltd., the communications chipmaker, is aiming to reveal a bid for Qualcomm Inc., the handset chip supplier, by end of this week, 3 sources well known with the issue claimed last week to the media. The decision is taken in an attempt to make a $200-Billion worth company its biggest technology acquirement ever. A tie-up might combine 2 of the biggest producers of chips for wireless communications for mobile handsets and lifts the shares for Intel Corp. that has been branching out into handset technology from its stranglehold in computers.
The worth of Broadcom’s bid has not been determined, although a proposal in the range of almost $70 to $80 for each share is being considered, one of the sources claimed to the media. At $70 for each share, a proposal might value Qualcomm at $103 Billion. Qualcomm is not alert of the details of bid by Broadcom, and it is doubtful if it will entertain this contract, the sources claimed. “It is a smart decision that might make Broadcom into a tech behemoth,” claimed Daniel Ives, industry analyst, to the media in an interview. Qualcomm refused to comment, while Broadcom did not respond immediately to a question for comment.
The bid follows as Broadcom aims to shift its head office from Singapore to the U.S. Donald Trump, President of the U.S., commented on the decision at a White House event last week where Hock Tan, Chief Executive, mentioned Republican tax attempts. It is presently integrated in Singapore and San Jose, California. Acquisition by Broadcom might be the most determined decision by Tan, who has converted a scrappy, small chipmaker into a $100-billion firm with a string of agreements, since he took the wheel a decade back.
The offer follows as Qualcomm is attempting to conclude its pending acquirement of NXP Semiconductors NV worth $38 Billion. NXP is one of the biggest producers of chips for cars and growing into self-driving tech. And Broadcom also is open to obtaining NXP, as per one of the insiders. Antitrust administrators, who also might have to endorse a Broadcom-Qualcomm agreement, are still mulling over Qualcomm’s buyout of NXP.