Qualcomm has officially rejected Broadcom’s $105 billion acquisition offer â? an offer so huge it was started become the world’s largest tech offer.
The San Diego-based chipmaker announced on Monday that it was moving on the acquisition, which Broadcom really valued at $130 billion using Qualcomm’s $25 billion debt into consideration. Â
Why? Well, for the basic reason Qualcomm believes it’s really worth more money.
The company generates key wireless technology like modems and processors for popular mobile phones like the iPhone. And though Qualcomm is within the midst of a legal question with Apple, the company still feels its overall value is greater than what Broadcom was offering. Â
In a press release, Qualcomm’s professional chairman Paul Jacobs announced, “It is the board’s unanimous belief that will Broadcom’s proposal significantly undervalues Qualcomm relative to the Company’s leadership position within mobile technology and our upcoming growth prospects. “
“The Plank and Management are singularly centered on driving value for Qualcommâs investors, ” Presiding Director for Qualcomm Incorporated, Tom Horton added.
Upon news of the deal, Qualcomm’s stock rose 1 . 6 % and Broadcom’s stock rose. 04 percent.