Official: Qualcomm rejects Broadcom’s acquisition offer worth $103 Billion

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Last week, reports emerged that Broadcom offered around 100 Billion dollars to Qualcomm to acquire them. But, now Qualcomm officially rejects that offer of 103 Billion dollars. They also stated that Broadcom “undervalues” them.

Qualcomm’s Snapdragon mobile processors are widely used in the smartphones around the world. Even, they are pioneering in the 5G modem technology for the past few months or so. Hence, Broadcom’s bid for the company was a surprise when the news emerged few days back. Because, though Broadcom is the world’s largest WiFi chip manufacturer, they are owned by another company named Avago Technologies. This company acquired Broadcom in the year 2015.

Qualcomm rejected this deal of 103 Billion dollars after an unanimous decision made by the company’s directors. The Executive Chairman and the Chairman of the Board of Qualcomm Incorporated, Paul Jacobs stated –

“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.”

Qualcomm’s CEO Steve Mollenkopf also added –

“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.”

Its good to know that Qualcomm is to stay as an individual entity. What do you guys think? Let us know in the comment section below.

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