Broadcom officially announced the offer to purchase Qualcomm
06.11.2017 Erika J. Wells 0 Comments
Broadcom CEO hock tan said that the offer is beneficial for shareholders of both companies. Broadcom wants to pay in cash and shares at a price of $ 70 apiece.
The proposal has been carefully designed. Shares of Broadcom rose by 60%, compared with the year 2016. While Qualcomm shares fell 16% from January 2017. Qualcomm 2017 embroiled in a legal battle with Apple and was fined 774 million dollars in Taiwan. The result of the 2017 financial year ended for the Qualcomm profits fall by 90%. As of November 3, 2017 market capitalization Broadcom is 112 billion dollars, and Qualcomm — 91 billion.
We would not make this offer if they were not sure that our common customers will approve the new combination.
Analyst Financial Times suggested that Broadcom wants to take LTE and 5G, which are from Qualcomm. Hock tan met on 2 November with the President of the United States and reported that Broadcom will move the headquarters from USA to Singapore. This should simplify and accelerate the process of the transaction.
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