Chipmaker Broadcom exploring deal for Qualcomm: Bloomberg

Chipmaker Broadcom exploring deal for Qualcomm: Bloomberg

FILE PHOTO: One of many Qualcomm buildings is shown in San Diego, California, U.S. on November 3, 2015.
REUTERS/Mike Blake/File Photo
REUTERS: Broadcom Ltd is considering a bid of more than US$100 billion for smartphone chipmaker Qualcomm Inc , Bloomberg reported on Friday, in what could be the biggest-ever chip deal.Broadcom is speaking to advisers and the offer of about US$70 a share would include cash and stock, the report said, citing people familiar with the matter..The US$70 share price, values Qualcomm at US$103.2 billion. The potential offer is a premium of 27.6 percent to Qualcomm's Thursday close.No final decisions have been made and there is no guarantee a deal will go ahead, Bloomberg said. https://bloom.bg/2h8pnlSA deal would be the latest in the chip industry that has been rapidly consolidating as companies try to capture a big share of the fast-growing connected devices and cars market."It's a smart move that would make Broadcom into a tech juggernaut," said GBH Insights analyst Daniel Ives.
Broadcom, formerly Avago Technologies, is known for its connectivity chips used in products ranging from mobiles to servers, while Qualcomm provides connectivity chips to Android smartphone makers and Apple Inc .Broadcom is looking to complete its US$5.5 billion purchase of Brocade Communications Systems Inc while Qualcomm is in the process of closing its US$38 billion deal for NXP Semiconductors NV .
Shares of Qualcomm jumped 18 percent, while Broadcom's stock climbed 3.5 percent on Friday afternoon. Shares of NXP fell 3 percent and Brocade was down 1.7 percent.Qualcomm declined to comment, while Broadcom did not immediately respond to a request for comment.The report also comes when Qualcomm faces a multi-national legal battle with Apple Inc over Qualcomm's licensing terms to Apple.
(Reporting by Sonam Rai in Bengaluru; Editing by Sai Sachin Ravikumar and Arun Koyyur)
Source: Reuters
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