US government officially blocks Broadcom’s attempt to buy Qualcomm

It was just last week that we reported that the US government was looking into Broadcom’s aggressive attempted takeover of chip maker Qualcomm, and before that investigation could even really take off, the buyout has been completely blocked. ¬†President Trump issued an executive order on Monday on the recommendation from the CFIUS, killing the multi-billion dollar deal.

The committee had concerns that if Broadcom purchased Qualcomm, the market could end up being dominated by Chinese manufacturers which would lead to national security issues for the United States. Broadcom went on record saying they disagreed with the decision, while Qualcomm didn’t make any comment.

The decision to block the takeover is also odd, since Qualcomm did technically already refuse a buyout. Broadcom was in the process of getting enough board member votes to approve a takeover of the company, so there was no guarantee that Broadcom would’ve pulled this off with or without the president’s executive order. Still, though, with how much attention the deal had been gathering in the past few weeks, there were bound to be some raised eyebrows over the situation.

So, for now, no need to worry about Qualcomm being bought out or forced to do anything other than what they’ve been doing for the past few years. Not until an even bigger fish swims along, anyway.

source: Bloomberg

About the Author: Jared Peters

Born in southern Alabama, Jared spends his working time selling phones and his spare time writing about them. The Android enthusiasm started with the original Motorola Droid, but the tech enthusiasm currently covers just about everything. He likes PC gaming, Lenovo's Moto Z line, and a good productivity app.