Earlier there was insider said it expects Qualcomm will boycott Broadcom's acquisition plan.The source said Qualcomm will reject Broadcom from two factors.First, Qualcomm would claim Broadcom's offer is too low.Second, Qualcomm will be anti-monopoly Investigate as an excuse.
Qualcomm CEO Steve Mollenkopf said: "Qualcomm is in a better position than any other company in the areas of mobility, the Internet, automotive, edge computing and interconnects and we believe we can create for our shareholders More extra value.
After announcing the offer to block Broadcom, Qualcomm shares recovered earlier lost ground, pre-up to 0.2%, after down more than 1%.
Perhaps, Qualcomm may not resist the merger, it just think Broadcom's asking price can not meet their own, 130 billion seems to be a huge sum of money, but Qualcomm on its own advantage in 5G crystal clear, seeing the first year of the 5G approaching, Broad market already has a considerable part of being about to be Qualcomm into, I am afraid, by contrast, Broadcom's 1300 billion dollar component is too light Moreover, the two sides had a considerable festivals before as early as 12 years ago in May 2005, Broadcom had Sued Qualcomm for infringing on its patents in wireless and wireline communications technologies, while Broadcom also reported some problems with Qualcomm's imports to U.S. authorities, and in just five months, Qualcomm sued Broadcom in turn, claiming the latter infringed It involved two patents on image compression and video encoding and decoding, and it did not end there, with Broadcom filing a lawsuit again in 2007 suing Qualcomm for infringement, perhaps realizing that it would be cheaper for both companies to sue each other, Qualcomm and Qualcomm Broadcom eventually reached a settlement by the end of April 2009, paying a fine of nearly $ 900 million through Qualcomm to Broadcom, while the two said in a statement that they would no longer interact with each other V, but each provides patent licenses for each other.
However, Qualcomm's unrelenting refusal should also be broadcasted, in addition to raising M & A offerings, they also plan to intervene on Qualcomm's board of directors .. If the agreement fails to buy, Broadcom is likely to launch a hostile takeover, the common method is to promise to shareholders Higher prices, higher acquisition offerings, including through increased bond financing.Most of the time, shareholders will be attracted to the interests, and put pressure on the board to ask them to agree to buy, this approach is often referred to as bearish hugging.This approach is often effective - As shareholders interviewed by Bloomberg, they are more concerned about prices.
In addition, there may be a dispute over the power of attorney to gain Qualcomm board seats to increase the likelihood of voting through the merger.According to Qualcomm's governance rules, competitors will be allowed to submit their board members before the December 7 nomination deadline Candidates list, sources said, Qualcomm proposed to raise a number of directors before Qualcomm nominated December 8, which will give Qualcomm shareholders the opportunity to vote for the company's board of directors and forced them to fight with Broadcom.
Qualcomm Broadcom acquisition in the face of the powerful acquisition, Qualcomm is also facing many challenges in the market.Apple first in the United States, Britain, China have to sue Qualcomm, followed by Qualcomm also initiated counter-litigation.As we all know, patent disputes are generally Protracted war, the long case no doubt will kill the market's patience as of September 24, 2017, Qualcomm fourth-quarter revenue of 5.9 billion US dollars, down 6.2% over the same period last year, a decrease of 5%; net profit of 200 million US dollars, more than In the same period of last year, the 1.6 billion U.S. dollars fell by 89%, mainly due to patent litigation between Qualcomm and Apple.Secondly, faced with the upgrading of technology, Qualcomm, which had a strong presence in the 3G era, had no advantage in 4G era In the just started the layout of the 5G era, Qualcomm will also face pressing harder Huawei and other more intense competition in addition to Qualcomm acquired NXP because of regulatory delays in the completion of NXP's share price has been higher than Qualcomm's acquisition Quoted as NXP Semiconductors shareholders, including hedge fund Elliott Management, have insisted on getting higher bid, according to one source, Qualcomm does not intend to large Raise bid for NXP semiconductors, Broadcom as to make a bid to improve the defensive strategy.
The only good news is that at the China-US Entrepreneurs Dialogue held last week, Qualcomm and Xiaomi, OPPO and vivo reached a $ 12 billion purchase intention of three Chinese handset manufacturers. If the cooperation agreement is reached, it is expected to decline for the performance Qualcomm injection of a 'cardiac needle'.
It may not be ruled out that Broadcom finally overcome the market-level and policy-level challenges and succeeded in bringing Qualcomm into the bag, which obviously means that a major reshuffle in the field of communications equipment manufacturing also means the earthquakes in global 5G technology research and development pattern.