Qualcomm will reportedly turn down Broadcom's $100 billion offer

Earlier this month, a report came up claiming that Broadcom is planning to buy Qualcomm for $100 billion. Last week, the company had confirmed the news that it had received a non-binding, unsolicited proposal from Broadcom Limited.

The company wanted to acquire all of the outstanding shares of Qualcomm for per share consideration of $60.00 in cash and $10.00 in Broadcom stock. However, looks like Qualcomm is not too happy with what Broadcom has to offer. As reported by Reuters, the California-based chipset maker will turn it down. This significant piece of information comes from people who are familiar with the matter.

The people also revealed that Qualcomm's Board of Directors met yesterday and they will reject the offer from Broadcom in an announcement expected to take place today. Another thing that has come to light is that Broadcom is planning to challenge Qualcomm's sitting board members at the next stockholder's vote.

Truthfully speaking, that is not a very reasonable deal even if Broadcom eventually convinces Qualcomm. We believe that Broadcom should make a deal where the price of the bid will be raised.

Moreover, the deal doesn't depend solely on Qualcomm. Even after Qualcomm agreeing to the deal, regulatory authorities would have to approve it as well as the stockholders of both firms. Let's look at the positive things that the deal would bring for Qualcomm.

As some of you are aware, the company is currently not in a good position due to the legal fights against Apple. So if the deal works out, it will be a nice distraction, especially for the Qualcomm stockholders.