Qualcomm’s increasing its original bid by 16%.
Earlier this month, Qualcomm remained resilient against Broadcom by declining the company’s second buyout offer of $121 million. Shortly after this, Qualcomm has increased its offer to NXP by 16% in an attempt to get Broadcom off of its back.
NXP is a Dutch semiconductor business that’s primarily involved with the creation of infotainment systems in automobiles, and this bid increase would see Qualcomm pay $127.50 per each share of NXP — resulting in a total purchase of $44 billion.
With this move, Qualcomm is hoping that the larger offer to NXP will make it easier for shareholders to see the value of Qualcomm as an independent company and reduce their eagerness to sell to Broadcom.
Speaking to Reuters about the revised offer to NXP, Qualcomm’s Board Director Tom Horton said:
It makes Qualcomm stronger and more profitable and diversified if there is no deal with Broadcom, and if we do decide to pursue a sale the same is true, more value would accrue to the Qualcomm shareholders.
Broadcom is reportedly evaluating its next moves following Qualcomm’s revised deal with NXP, so we’ll be sure to keep an eye on things and see what happens from here.
February 20, 2018 at 10:09AM