In today’s Mega chip industry, there may soon be a change of thrones. According to a media report, Broadcom is planning to take over the stumbling competitor Qualcomm.
The chip sector is facing nothing less of an earthquake, which should taste a little bitter to many competitors, especially the top dogs Intel and Samsung. According to the industry insider Bloomberg, the US company Broadcom plans to acquire the competitor Qualcomm. By making such a purchase, Broadcom could catapult itself directly onto number three position in the global chip market ranking.
Qualcomm: Business has problems
Although Qualcomm is, on the whole, quite solid financially, all sorts of problems are currently plaguing the company. In addition to a continuing lawsuit with Apple over mobile chip patents, the planned acquisition of the Dutch manufacturer NXP is stalling. In addition, there are frequent complaints from competition authorities of Qualcomm’s inappropriate licensing practices; these problems not only affect profits, the shareholders are also not very enthusiastic about it.
Qualcomm: Over $ 100 Billion Bid!
According to Bloomberg, Broadcom is poised to pay around $70 per Qualcomm stock, which equates to around $103 billion. Whether the US antitrust authority approves such a takeover, however, remains to be seen. Neither Qualcomm nor Broadcom have yet commented on these rumors.
Let’s hope this is not a Fake News 🙁