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Broadcom acquisition Qualcomm accused of too cheap shareholders or asked $160 billion

via:博客园     time:2017/11/8 18:43:15     readed:603


Tencent technology news, on Monday, the U.S. chip maker Broadcom Corp announced that it would spend $105 billion (including debt is $130 billion) acquisition of Qualcomm Corp, this will be the world's largest in the history of science and technology industry mergers and acquisitions. But soon there are many media and analysts pointed out that Broadcom's offer is too low, it take advantage of another's perilous state. Analysts point out that Qualcomm shareholders will require a $90 offer.

On Monday, Broadcom announced that it would bid $70 for Qualcomm's share price, including $60 in cash and $10 in Qualcomm stock, with an acquisition amount of around $105 billion.

The day before, the U.S. financial news website TheStreet pointed out that although the purchase plan Broadcom bold, but a little

The U.S. technology industry analyst Patrick Moorhead said, it is clear that the main reason for Qualcomm shares is to suppress the legal dispute between apple and uncertainty, and the investigation of other government antitrust issues.

The analyst said that Qualcomm shareholders may require Broadcom to offer at least $90 per share, according to this price, Broadcom acquisition total cost of $160 billion.

In response to the takeover offer, Qualcomm Corp responded that the board would evaluate it.

According to Bloomberg earlier reports, according to the price of Broadcom acquisition price earnings ratio, even less than the average level of the industry, indicating that Qualcomm's value is undervalued by Broadcom Corp.

Broadcom currently acquire Qualcomm, the existence of

In retaliation, Apple has asked the factory to stop paying royalties to qualcomm. In the three quarter, Qualcomm's profits plummeted by 90%, which clearly affected Apple's performance and caused high share prices to drop.

In the two quarter of this year, apple accounted for 20% of Qualcomm's revenue. And recently, the news said, because of legal disputes, Apple will be in next year's mobile phone to abandon Qualcomm baseband processor, instead of purchasing Intel and MediaTek products. This means that Qualcomm's future performance will face greater impact.

Cody Acree, an industry analyst in the United States, says that Qualcomm's acquisition of Qualcomm is unlikely to happen at the price of $130 billion. If Broadcom is sincere, it should offer at least $80 for Qualcomm stock.

The analyst said that Qualcomm has a dominant position in the global mobile communications chip and wireless communication technology patents. He said that the legal dispute between Qualcomm and apple is only temporary, after a period of time, apple and Qualcomm will sign the agreement, the dispute will become the past, while Qualcomm has the dominant position is still in the field of mobile communication of intellectual property rights.

In fact, this week announced the acquisition of a pass Qualcomm news, public opinion in shock. Because in the global communications industry, Qualcomm's influence and visibility is far greater than broadcom. In the era of intelligent mobile phone, Qualcomm has received a similar Intel in the PC market leading position, snapdragon processor has become synonymous with the flagship mobile phone processor, Qualcomm under the advantage of Taiwan area MediaTek difficult situation.

Previously, Qualcomm in many countries and regions have been antitrust investigation, many mobile phone manufacturers accused Qualcomm charged high patent fees, but these surveys did not have a huge negative impact on qualcomm. In the China market as an example, after being Chinese government $1 billion fines, Qualcomm reduced royalties, and all the mobile phone manufacturers signed a licensing agreement, in the market share of the mobile phone Chinese processor but has grown, many manufacturers to transfer from MediaTek Qualcomm processor.

According to Bloomberg and other media reports, Qualcomm shareholders and management may not accept Broadcom acquisition program, in addition, Broadcom may even launch agent wars, so that the acquisition transaction become thrilling

It is worth mentioning that not long ago, Broadcom Corp and Chen Fuyang announced that the headquarters of Broadcom will be moved from Singapore to the United States (before the establishment of dual headquarters system, a headquarters in the United States). It is generally believed that the relocation of the headquarters of the Broadcom, is to carry out more acquisitions, including Qualcomm, the future of these mergers will no longer be cross-border acquisitions, Broadcom will no longer by CFIUS review.

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