Qualcomm, the American multinational semiconductor and telecommunications equipment company, issued a statement to discuss Broadcom’s proposal to acquire Qualcomm. Qualcomm’s Board and its senior management team met with Broadcom Limited (NASDAQ: AVGO ) on Wednesday to discuss the offer. The meeting came after Broadcom rejected a revised cash-and-stock bid of $82 per share.
We met with representatives of Broadcom for two hours earlier today, and listened carefully to what they had to say. The Qualcomm board will promptly meet to discuss the meeting and to determine next steps. – Representative of Qualcomm
Qualcomm had made this breakthrough technology that connects and communicates other services. The outcome of this meeting will decide whether the company will take the proposal made by the Broadcom company. Qualcomm had previously rejected the Broadcom takeover approach since November. It has become a matter of speculation whether Qualcomm will take a step further with the negotiations or will continue to defend itself by rallying its shareholders. However, after the long meeting of two hours finished, both parties refrained from commenting on the possible outcomes.
Qualcomm board members said that they would again call a meeting with the other board members to determine and decide the company’s next steps. The meeting was looked as an attempt to bridge the gaps between both value and deal certainty of both the companies and it will strive to do better in understanding the previously unaddressed issues. Broadcom was planning to address antitrust concerns by selling two Qualcomm businesses, its WiFi networking and processors and chip for mobile phones. However, this proved to be inadequate since the deal would not win regulatory approval. Qualcomm is worried that if they sign the deal it will inevitably lead to uncertainty among its customers.