Qualcomm has firmly rejected Broadcom's unsolicited offer to acquire the company, deeming the $130 billion offered as a "significant undervaluation". Sources told Reuters that prior to Qualcomm's official rejection, Broadcom was already considering a larger bid.
Broadcom and Qualcomm battled through press releases on Monday while investors tried to figure whether the two semiconductor giants would actually merge.
The bid "significantly undervalues Qualcomm relative to the company's leadership position in mobile technology and our future growth prospects", Paul Jacobs, chairman and son of Qualcomm co-founder Irwin Jacobs, said in a statement.
"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", Horton said.
Last week, Broadcom made an unsolicited offer to buy Qualcomm, one of the biggest SoC and cellular modem manufacturers for smartphones.
Qualcomm holders might not like Broadcom's $70-per-share offer for the stock, but "we aren't that far away from something that might seem more palatable ($80-ish?)" he thinks.
"No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry", said Mollenkopf.
Broadcom Ltd., also announced, in the company of President Donald Trump, that it would bring its corporate address back from Singapore, to Delaware. At the time, Broadcom said that it was prepared to offer as much as $130 billion dollars to take control of Qualcomm. Broadcom did not immediately return a request for comment.
Overall, Broadcom's bid is a very ambitious attempt to grow its share of the market for components that go into mobile phones. Amid all the fighting with Apple, and accompanying loss of revenue, Qualcomm's shares had fallen 20% this year through late October to $51 before rumors of Broadcom's interest leaked.