Broadcom has issued an offer to buy rival chip maker Qualcomm in a deal valued at nearly £100 billion – to include NXP Semiconductor, should Qualcomm’s own acquisition go through – further shrinking the embedded and communications chip markets.
Following ongoing legal battles with Apple, Qualcomm’s largest customer, and reports that the company is to move to Intel for its modem chips, Broadcom has offered £98.8 billion to acquire Qualcomm – a deal which is to include NXP providing Qualcomm’s own offer to buy that company goes through successfully. If successful, the offer would create a company with a combined $51 billion plus revenue.
“We have great respect for the company founded 32 years ago by Irwin Jacobs, Andrew Viterbi and their colleagues, and the revolutionary technologies they developed,” claims Broadcom chief executive and president Hock Tan. “Following the combination, Qualcomm will be best positioned to build on its legacy of innovation and invention. Given the common strengths of our businesses and our shared heritage of, and continued focus on, technology innovation, we are confident we can quickly realize the benefits of this compelling transaction for all stakeholders. Importantly, we believe that Qualcomm and Broadcom employees will benefit from substantial opportunities for growth and development as part of a larger company.”
The deal has yet to be accepted by Qualcomm, however, which described it as unsolicited and non-binding in a brief statement on the matter. Further information is not expected to be released until Qualcomm’s board has reviewed Broadcom’s offer.