Broadcom is offering to buy Qualcomm for $130 billion

Qualcomm already has its plate full with its various legal battles against Apple, but it looks like the company is about to have another issue to deal with. This week, rival chipmaker Broadcom made an unsolicited bid to take over Qualcomm, in a deal worth $130 billion.

Broadcom is offering a $70 per share for Qualcomm, which is a 28 percent premium over Qualcomm's closing stock price on the 2nd of November. The $130 billion offer includes $25 billion in assumed debt. In short, it is a bid likely too lucrative for stock holders to pass up. If Broadcom CEO, Hock Tan can convince Qualcomm's board, then the newly merged firm would become the third largest chip maker in the world, just behind Samsung and Intel.

In a press statement, Broadcom's Hock Tan said that this $130 billion buyout offer should be “compelling for stockholders and stakeholders in both companies”. If Broadcom does end up acquiring Qualcomm, then it would fill a hole in the firm's product portfolio. Right now, Broadcom mainly focuses on WiFi and Bluetooth chips, meanwhile Qualcomm is at the forefront of LTE and 5G connectivity.

Qualcomm is also obviously well known for being the most popular provider of SoCs for Android devices. If Qualcomm does choose to accept this massive buyout bid, then there would be another set of hurdles to clear, as the deal would likely grab the attention of US regulators.

KitGuru Says: This move has seemingly come out of nowhere, but it is a huge deal for the future of both companies. With $130 billion on the table, it is hard to imagine Qualcomm's board passing this up. 

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