Qualcomm stock jumps on reported Broadcom interest

Albert Gea  Reuters

Bloomberg broke the news Friday morning, saying people familiar with the matter are talking to advisers about bidding $70 a share, for a total of more than $100 billion, for Qualcomm.

As for Broadcom, its CEO Hock Tan has a huge appetite when it comes to acquisitions and states that he is interested in more deals, which could be halted thanks to the intervention of US regulators since Qualcomm is a USA -based technology company.

According to that report, the potential bid appears to be in the early stages, with no final decision made yet, but is likely to be made in coming days. The news outlet also noted that the stock of Qualcomm went up 14 percent following the news, which is the largest stock movement for the company in almost a decade.

Avago paid $37 billion in cash and stock for Broadcom.

That gave Qualcomm a current total market value of $91 billion.

At issue between Qualcomm and Apple are licensing fees the chipmaker charges for patents that cover the basics of how mobile phone systems work. Broadcom announced yesterday its intention to move corporate headquarters back to the U.S.to take advantage of the lower tax rates expected.

Its competitor Qualcomm finds itself in a weakened state. Regulators are still reviewing Qualcomm's $38.1 billion proposed acquisition of NXP Semiconductors for $38.1 billion.

Both Broadcom and Qualcomm have pending deals that could be affected by a merger.

Before today, its shares had slumped 16 percent this year, compared with a 41 percent surge in the Philadelphia Semiconductor Index - in part due to an escalating legal battle with Apple that's costing revenue and jeopardizing the business model that for years made Qualcomm one of the most successful chipmakers in the world. It has faced regulatory scrutiny in Europe, and some shareholders such as activist hedge fund Elliott Management Corp. have said the deal undervalues NXP, a large maker of automotive and other chips.

Related news:

Hot News

isis-killer-beheading-video-story-top NYPD Building Case Against Harvey Weinstein
Nov 04, 2017 - 00:55
Just before Christmas that year, she alleges, he showed up in the lobby of her apartment building. With the case being seven years old, though, detectives are moving forward with evidence first.

isis-killer-beheading-video-story-top Marseille's Patrice Evra sent off before match after kicking fan
Nov 04, 2017 - 00:41
However, the Frenchman faces a far heftier sentence should he be found guilty, an outcome that appears likely due to the clear video evidence against the Marseille man.

isis-killer-beheading-video-story-top StarCraft 2 is going to free to play later this month
Nov 04, 2017 - 00:36
The solo campaign for StarCraft II: Wings of Liberty will continue the epic saga where it left off in StarCraft: Brood War . Access Unranked and Versus AI for free; unlock Ranked with 10 first wins of the day in Unranked or Versus AI.

isis-killer-beheading-video-story-top Bitcoin hits an all-time high; yet again!
Nov 03, 2017 - 01:09
As long as demand for it remains, it will continue to grow and as its value does, so too will future price predictions. These are just a few and widely varying, examples of where the bitcoin's value could head to in the next decade.

isis-killer-beheading-video-story-top Massive fire extinguisher recall; more than 37.8 million devices recalled
Nov 03, 2017 - 01:08
The U.S. government is recalling nearly 40 million fire extinguishers, for fear that the products may not work in an emergency. The massive recall involves 134 models of Kidde fire extinguishers manufactured between January 1, 1973 and August 15, 2017.

isis-killer-beheading-video-story-top Government recalls almost 38M fire extinguishers manufactured in NC
Nov 03, 2017 - 01:07
The recall covers 134 models of push-button and plastic-handle extinguishers made from 1973 through August 15 of this year. The recall includes fire extinguisher models that were previously recalled in March 2009 and February 2015 .

isis-killer-beheading-video-story-top Spanish prosecutors request jail for Catalan government
Nov 03, 2017 - 01:05
The deposed leader was photographed in a cafe in Brussels on Thursday while other Catalan government members appeared in court . It appears likely that a European arrest warrant is now likely to be made by a High Court judge.

Ex-Trump campaign adviser pleads guilty to making false statement
Nov 03, 2017 - 01:04
The two men then exchanged emails about a possible meeting between Trump campaign aides and Russian government officials. Trump has previously denied that members of his campaign team had contact with Russian officials.

isis-killer-beheading-video-story-top Long queues outside Apple stores ahead of iPhone X launch
Nov 03, 2017 - 00:53
Apple fiscal 4th quarter sales results are in with a return to growth in the smartphone, tablet, and notebook markets. Device sales reached 46.677 million for iPhone, 10.326 million for iPad and 5.386 million for Mac.

Jahlil Okafor Openly Requests Trade Or Buyout From 76ers, Wants Move 'Quickly'
Nov 02, 2017 - 01:05
So the fact that I know that at the end of the season I would at least have an opportunity to play elsewhere, that's great. Still, Okafor said he wants to either be bought out or to be traded.

isis-killer-beheading-video-story-top South Florida Awarded 2021 College Football Playoff National Championship
Nov 02, 2017 - 00:55
This will be the first time the College Football Playoff National Championship is played in the Los Angeles region. Lucas Oil Stadium will be the site of the 2022 College Football National Championship game .

isis-killer-beheading-video-story-top Justin Bieber and Selena Gomez Snuggle, Bike Ride Through Los Angeles
Nov 02, 2017 - 00:39
The source added, "Justin always has the biggest piece of her heart". "Justin really wants to get back with Selena". They've grown up a lot in the past couple of years and are mature about the situation".

isis-killer-beheading-video-story-top Former Florida State WR Kelvin Benjamin traded to Buffalo Bills
Nov 02, 2017 - 00:33
Benjamin immediately upgrades the receiving corp of for a team who shipped Sammy Watkins away prior to the start of the season. He was solid last season, finishing the year with 63 catches for 941 yards, and he was on a similar pace this season.

isis-killer-beheading-video-story-top Driver killed after 12-year-old jumps off I-66 overpass
Nov 01, 2017 - 01:01
She said the 22-year-old loved to help children in need and had dreamt about eventually making it a career. Harris' mom revealed to WUSA that her little girl was concentrate to help kids who are fighting dejection.

isis-killer-beheading-video-story-top Iraqi army takes control of Iraqi-Kurdish border crossing with Turkey
Nov 01, 2017 - 00:58
As Iraq's military crumbled in the face of Islamic State group advances in 2014, Kurdish forces took control of Kirkuk. Sharif, a father of three, was stabbed five times after his family were locked up in another room, the source said.