Qualcomm again rejects broadcom's offer, although they will negotiate

Qualcomm has been in Broadcom's sights since last November. After rejecting an initial offer of $ 130 billion, Broadcom has made a new offer that amounts to $ 145 billion. This last offer has not been sufficient either and has been rejected again.

Qualcomm and Broadcom need to negotiate

The latter was Broadcom's "best and latest offer", but it was not enough to influence Qualcomm's advice. After calculating, $ 145 billion results in $ 82 per share, something that "does not meet the firm regulatory commitment" required. Regulators around the world already have their eyes on Qualcomm, with several antitrust cases against the company, which is why a merger as large as the one that would occur with the union of Qualcomm and Broadcom in a single company would provoke greater scrutiny. from regulators, the latter could prevent the merger of the two companies.

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“It is indisputable that there are significant regulatory obstacles to your proposed transaction. It is also indisputable that if Qualcomm signed a merger agreement and, after an extended period of regulatory review, the transaction did not close, Qualcomm would suffer enormous and irreparable damage."

Qualcomm and Broadcom senior managers will meet again to discuss the issue. If Broadcom can guarantee that the transaction will be closed, then a final agreement may be possible. Something that will be complicated after knowing that Apple caught the attention of the European Commission with its proposed acquisition of Shazam valued at $ 400 million, a derisory acquisition compared to the offer proposed by Broadcom to acquire Qualcomm.

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