Broadcom to Bid for Qualcomm: reports
Broadcom Ltd is planning to unveil a bid for smartphone chip supplier Qualcomm by Monday, an attempt to create a $200-billion company through the biggest technology acquisition ever.
According to sources from multiple news outlets including Reuters and Bloomberg, an offer for Qualcomm of about $70 a share would include cash and stock and is likely to be made in the coming days.
A tie-up would combine two of the largest makers of wireless communications chips for mobile phones and raises the stakes for Intel, which has been diversifying into smartphone technology from its stronghold in computers.
The combination would dwarf Dell's $67 billion acquisition of EMC in 2015 and meld Qualcomm's dominance of chips that connect handsets to wireless networks with Broadcom's expertise in chips that link devices to Wi-Fi networks.
Qualcomm is not aware of the details of Broadcom's bid, and it is far from certain whether it will entertain this deal, the reports added.
Qualcomm declined to comment, while Broadcom did not immediately respond to a request for comment.
The bid comes as Broadcom plans to move its headquarters to the United States from Singapore. U.S. President Donald Trump commented on the move on Thursday at a White House event where Chief Executive Hock Tan cited Republican tax efforts.
The proposal comes as Qualcomm is trying to close its pending $38-billion acquisition of NXP Semiconductors NV, one of the largest makers of chips for vehicles.
Broadcom is also looking to complete its $5.5 billion purchase of Brocade Communications Systems.
Qualcomm faces a legal battle with Apple over Qualcomm's licensing terms to Apple and Apple is considering dropping Qualcomm chips from its phones.
Qualcomm and Broadcom have patent portfolios in wireless communications that are largely adjacent to each other, with Qualcomm covering mobile data networks and Broadcom covering WiFi and Bluetooth.
Seperately, The Wall Street Journal reported Friday that Marvell Technology is in talks to acquire another communications chip vendor - Cavium Technologies - in a move that would create a company with a combined valuation of about $14.5 billion.