Chipmaker Broadcom bids $130bn for rival Qualcomm

Qualcomm declined to comment while Broadcom did not immediately respond to a request for comment

Qualcomm declined to comment while Broadcom did not immediately respond to a request for comment

The proposed deal would see Broadcom paying a 28% premium on shares for its rival but is reliant on Qualcomm completing its $38 billion takeover of NXP, which has yet to close.

Broadcom said Monday that it was confident that "common global customers" would "embrace" the deal.

Broadcom has reportedly made an unsolicited offer to buy Qualcomm in a deal valued at $130 billion, which, if it succeeds, would be the largest acquisition in tech history.

Qualcomm declined to comment, while Broadcom did not immediately respond to a request for comment.

Some of the earnings after the close. Facebook beats
Overseas growth in monthly active users - a key metric for Facebook - also looks promising to many analysts. Analysts surveyed by FactSet had estimated $1.28 a share on revenue of $9.85 billion.

Still, analysts expect Qualcomm management to reject the $70-per-share price Broadcom is offering as too low. CEO Hock Tan last week, saying the company is likely to relocate its headquarters from Singapore to the United States. For every share, the company would pay $60 in cash and $10 in Broadcom stock.

"Broadcom's proposal is compelling for stockholders and stakeholders in both companies". According to reports people involved with Broadcom believe that it will not shy away from initiating a "proxy fight to gain seats on Qualcomm's board of directors in support of its offer". Broadcom already provides designs for Wi-Fi and Bluetooth chips, and by bringing in Qualcomm it will be able to encompass LTE and 5G capabilities.

Qualcomm is now trying to close its pending $38-billion acquisition of NXP Semiconductors, a leading supplier of chips for vehicles that is also expanding into self-driving technology, and it is believed that Broadcom is open to acquiring NXP.

Adjacent products are often cheaper when offered by one company, according to standard economic theory, which could be good for phone makers and potentially incline regulators toward allowing the deal, said Henry C. Su, a former Federal Trade Commission trial attorney.

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