Qualcomm was very recently approached by Broadcom with a buyout offer of over 100 billion dollars. That’s a huge chunk of change, but apparently it wasn’t enough to even tempt Qualcomm; their board has unanimously decided to reject Broadcom’s offer.
Despite being a very, very large offer, Qualcomm believes they’re in an excellent position in the growing internet-connected market. And we’re not just talking about smartphones, but wearables, IoT and smart home devices, automotive devices, and networking technologies. Qualcomm has a stake in a ton of different markets, and they’re a big name with a dominant position. So while turning down a huge offer like that seems crazy, the company really is probably worth more than what Broadcom was offering.
On the other hand, this refusal isn’t deterring Broadcom, at least on the surface. They’ve said they’re still committed to merging the companies, which might mean we’ll see a significantly larger offer or some other more aggressive tactics. That’s all without touching on Qualcomm’s current legal spat with Apple, too, which might throw a wrench into some of these plans.
For now, its business as usual, but keep an eye on these guys over the next few months.