Qualcomm issued a formal takeover offer for Qualcomm, hoping the two sides would be able to sit down and negotiate an agreement. Regardless of whether the case can be finalized in the future, has triggered the market for the next wave of semiconductor industry and tide of concern. Boton proposed to buy Qualcomm $70 a share, the total amount of $130 billion, including Qualcomm's current acquisition of $110 a share of NXP's deal, regardless of whether the latter is passed or not, and that the Qualcomm takeover offer will not change. Boton's $70 per share offer, $60 in cash and $10 for Bo shares, amounted to a 28% premium on the November 2 closing price of Qualcomm, the last day of the takeover. Hock Tan, chief executive of Bo Tong, said in particular that the company had done five major acquisitions since 2013 and that the integration had been quite good, and that it was also quite confident that the merger could be vetted through government audits. Boton the advantages of the merger include: first, integration can become the world's largest communications semiconductor company; Second, the expansion of the size of the merger will help to provide more advanced semiconductor solutions to customers; Third, after the integration, estimated 2017 revenue can be washed up 51 billion U.S. dollars; EBITDA (pre-tax depreciation amortization surplus) $23 billion. Boton said the proposal had been unanimously agreed by the Board of directors, while Silver Lake Partners, which had previously cooperated many times, also pledged to raise $5 billion of convertible bonds; It is expected that the entire acquisition will be completed within the fastest 12 months if the two sides agree to a contract. Hock Tan, the chief executive, said in a public purchase letter that this was the case as early as last August, and that over the past year, it has successfully merged with Avago to improve Avago's camp harvest and share prices up 55%. In particular, he noted that the merger would not be made without full confidence that global clients would support the case. While the company is confident in the takeover, it involves many new acquisitions, and the complexity has also made many foreign-media alerts. Bo Tong Just last year to complete the acquisition of 37 billion U.S. dollars Avago, Bo Tong also want to buy $5.9 billion brocade Communications (not yet clearance), and brocade itself just to buy 1 billion dollars Ruckus wireless soon. In addition, Qualcomm itself to buy the NXP for $ more than 40 billion has not yet passed, and NXP just in 2015 to buy Freescale for $17 billion. It all sounds a little dizzy, and these are just a few of the big purchases that have been announced in recent years, and they don't include unpublished or smaller amounts. Overall, the semiconductor industry has been buying up to $400 billion since 2011, and the Avago have been very aggressive buyers. In an analysis, Bloomberg specifically noted that analysts were generally confident in hock Tan and his ability to buy, and everyone in private said that Tan had a shot and everyone was relieved. It's just that Bo Tong has to integrate 6 companies at a great risk. Of course, the whole of the semiconductor industry, or the scale of the problem, because the semiconductor industry is generally faced with the process more and more complex, more expensive, but customers have been shrinking the dilemma. After the purchase of Qualcomm and NXP, Bo Tong can become the world's third largest chip industry, the smartphone 0 components market is expected to eat a large market. Just by size or by its limits, Qualcomm, for example, is an out-of-the-box case, Qualcomm almost dominates the entire smartphone technology, but the battle between Qualcomm and Apple stems from the divergence between the two sides on the way the grant was received, leading to Apple's consideration of abandoning the high-pass data machine chips for next year's iphone and ipad, Use the other 0 component sources instead. In addition, the high pass acquisition NXP variable is actually quite large, since NXP investors are hoping to pull up the offer and are now agreeing to let Qualcomm buy only 5% of the $110 a share, the company did not specify whether it would accept a full charge if Qualcomm NXP the purchase price. Or what will happen if the case is delayed. Qualcomm has yet to respond to the case, but the market has several points to watch out for: first, whether Qualcomm will pull up the NXP acquisition price, trying to complete the NXP takeover case, in order to prevent the acquisition of Bo-Tong? From the terms of the deal, the whole amount amounted to $130 billion, of which $115 billion was required for cash. With a good record of past acquisitions, perhaps the bank has a fairly high level of support, but the current market value of Bo Tong is only $112 billion trillion, debt more than $12 billion trillion, if the increase of $115 billion trillion debt, can stand? But assuming the NXP does not buy, perhaps the entire deal looks more feasible, which is why Bo Tong only promised to have a high pass conditions to buy NXP, because in case of the break, Bo Tong is an advantage. Therefore, if Qualcomm completes the NXP acquisition as soon as possible, there may be some chips for blocking the Bo-tong attack. Second, will Intel's mobile chip industry face more competition? Apple has been using Intel's data-machine chips in some iphone 7 machines since last year, and has continued to use the iphone 8 and X this year, and has recently even been rumored to have given up on the Qualcomm chip next year. Apple is also Bo Qualcomm's major customers, the main supply of RF chips, if Bo Tong has a way to deal with Apple in the authorization to reconcile, then Apple will again rely on Qualcomm data machine chip, after all, Qualcomm's higher-order 4G data machine performance is better than other opponents. Furthermore, what careers may be abandoned after the purchase of Bo Tong? In the past, the company has tended to take away some of its less attractive businesses, such as the Brocade takeover, one of the conditions for selling Brocade's non-storage network business. If Bo Tong really buy Qualcomm, then Qualcomm's WI-FI/BLUETOOTH/GPS connection chip business is likely to be sold, mainly with the Bo Qualcomm's own business overlap too big, also not easy through the government audit. Assuming NXP is also acquired, the NXP Smart card and payment card Micro processor business is the probability of unwinding, because these businesses do not nxp their own vehicles, mobile and IoT chip business to attract people. Finally, may intel or other chip makers offer to buy Skyworks or Qorvo? The Bo-Tong RF Chip opponent is Skyworks with Qorvo, now rumored to be a possible takeover by Intel, whether buying Skyworks or Qorvo has helped Intel in the mobile and IoT business, can provide a more complete product line to the smartphone OEM industry. Texas Instruments and analog devices also have the full effect of acquisitions, but Skyworks currently has a market capitalisation of $21 billion, and may be less likely to be able to afford prices.
