The price was revised several times after Broadcom initiated the hostile offer in November last year to purchase the assets of Qualcomm for $103 billion in a cash and stock deal.
If completed, the merger will result in the creation of an all-in-one semiconductor conglomerate capable of developing cell phone chips to electric vehicles. All along, Broadcom has stipulated the successful completion of Qualcomm’s own acquisition of NXP Semiconductors as a condition for its offer.
The letter sent by Qualcomm, calling for mutual due diligence, assumes significance considering the complexity of the matter. What is intriguing is the timing of the letter as it was sent ahead of the upcoming board meeting of Qualcomm, at which shareholders will be electing a new team of board members. Most importantly, it will be decided at the meeting whether to hand control to the six nominees recommended by Broadcom.
In a dramatic turn of events, Broadcom reduced the offer price by 4% to $117 billion last week, after Qualcomm failed to raise its offer for NXP Semiconductors.