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Broadcom reportedly planning to buy Qualcomm for $100 billion
When asked about the probable deal, neither Qualcomm nor Broadcom agreed to make a statement.
Qualcomm landed in hot water after it got into a legal fight with Apple. Since the beginning of this year, both the companies have been filing lawsuits against each other.
The latest one was filed by Qualcomm against Apple, alleging the iPhone maker was sharing confidential information with Intel. Amidst all these, Bloomberg reports that Broadcom Ltd. Is now planning to acquire the California-based chipset maker for $100 billion. The information has been revealed by people familiar with the matter.
If the information turns out to be legit eventually, it would be the largest takeover of a chipset maker so far. The source further reveals Broadcom is currently speaking to advisers about the potential deal. The offer of around $70 a share would include cash as well as stock and could be made in the coming days. However, Broadcom is yet to take a final decision.
Interestingly, after the news came to light, Qualcomm's shares rose up to 19 percent in New York, reports Bloomberg. They closed up 13 percent at $61.81, taking up the value of the company at $91 billion. Broadcom, on the other hand, rose 5.5 percent, for a market valuation of around $112 billion.
When asked about the probable deal, neither Qualcomm nor Broadcom agreed to make a statement. In any case, the current situation of Qualcomm is deteriorating each passing day.
Its seemingly never-ending legal dispute with Apple is costing revenue for Qualcomm. As such, the company's profits dropped 90 percent year-over-year. Furthermore, it will lose 20 percent of its modem chip business as Apple would stop using Qualcomm chips from next year.