Posts Tagged: "Hock Tan"

Blocking Broadcom’s Takeover Ensures U.S. Security

President Trump’s recently halting Broadcom from a hostile takeover of Qualcomm is good news for American national security. Some have cast the administration’s intervention as “protectionism.”  Those people are ignoring the main point. The president’s order preserving the U.S. firm’s independence acted, as the Wall Street Journal said, on “national-security concerns in this case [that] are legitimate.” … Had Mr. Trump not stopped Broadcom, U.S.-based technology may not set the standards — and level of security — adopted for 5G telecommunications infrastructure. A weakened, dismantled Qualcomm could be overtaken by China’s national champion, Huawei. Congressional concerns over Huawei products’ security and privacy vulnerabilities, as well as the company’s intimacy with the Chinese government, have kept its phones and equipment out of U.S. stores.

Broadcom Announces Bid Valued at $130 Billion to Buy American Semiconductor Giant Qualcomm

On Monday, November 6th, Singapore-based semiconductor designer Broadcom (NASDAQ:AVGO) announced that it had offered a proposal to acquire San Diego, CA-based semiconductor rival Qualcomm (NASDAQ:QCOM). The deal values Qualcomm at about $130 billion and Broadcom would pay $70 per share; stockholders would receive $60 in cash and $10 in Broadcom shares in the deal. That $70 per share price was higher than Qualcomm’s per share price on November 6th, when it popped above $65 per share early in the day before declining towards $62 by midday trading. According to Broadcom’s press release on the news, its proposal represents a 28 percent premium over the closing price of Qualcomm stock on Thursday, November 2nd.