Thanks but no thanks.
That, in essence, is Qualcomm’s response to an offer from Broadcom to buy the tech company for a staggering $105 billion.
Qualcomm said in an announcement that the “unsolicited proposal” is “not in the best interests of shareholders and dramatically undervalues” the company.
Broadcom announced the proposal in a news release last week.
Had the buyout pushed through, reports said it would have been the world’s biggest tech deal.
Statements from Executives
Three top Broadcom executives issued statements with regard Broadcom’s offer.
Paul Jacobs, Qualcomm executive chairman and chairman of the board of Qualcomm Inc., said: “It is the Board’s unanimous belief that Broadcom’s proposal significantly undervalues Qualcomm relative to the Company’s leadership position in mobile technology and our future growth prospects.
Qualcomm Inc. CEO Steve Mollenkopf followed it up, saying, “No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry.
“We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G.”
Significant Regulatory Uncertainty
For his part, Qualcomm Inc. presiding director Tom Horton, said the “Board and Management are singularly focused on driving value for Qualcomm’s shareholders.”
Horton also said, “after a comprehensive review, conducted in consultation with our financial and legal advisors, the Board concluded that Broadcom’s proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty.”
“We are highly confident that the strategy Steve and his team are executing on provides far superior value to Qualcomm shareholders than the proposed offer.”
As if to emphasize how it is worth more than what Broadcom has offered, the company said their technologies “powered the smartphone revolution and connected billions of people.”
The company pointed out that it “pioneered 3G and 4G – and now we are leading the way to 5G and a new era of intelligent, connected devices.”
Qualcomm believes that it is worth more than $105 billion that Broadcom has offered.
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