Do not immediately accept each other's conditions, especially if you know each other will come again.
It is with this belief that the board of directors of Qualcomm Inc. (QCOM) may have backed up the idea of rejecting a $ 105 billion takeover offer from Broadcom Ltd. (AVGO) on Monday, and the Board of Directors of Qualcomm was even more encouraged, Because Broadcom reiterated after less than two hours of acquisition intentions, issued an olive branch to the once rival, expressed its willingness to work with Qualcomm in order to reach an agreement after rejecting Broadcom, Qualcomm shares rose more than 2% on Monday, but still more than Broadcom The purchase price of 70 dollars per share is about 5% lower.
The current price is lower than the purchase price, this detail is not only important, but in fact good for Qualcomm.This shows that Qualcomm shareholders do not fully endorse Broadcom's offer, at least on the transaction can reach any doubts.First, antitrust review concerns, after all, this Piles of transactions likely to create the world's third-largest chip company based on revenue, holds a key position in the key smartphone parts market, followed by the longstanding pending patent royalty trial by Qualcomm and Apple Inc. (AAPL), two Home companies have decided to fight for the end.
Broadcom clearly believed it was able to solve the problem swiftly after the deal was completed and the way it seemed to be settled was a drastic move to revamp Qualcomm's patent business. Qualcomm's operating profit was driven by royalties but Hock Tan, chief executive of Broadcom, In a conference call hosted by Bernstein this week, investors said Qualcomm's business model made customer dissatisfaction an opportunity for 'smoothing and restructuring' Qualcomm's patented business. Bernstein analyst Stacy Rasgon believes Broadcom can buy Qualcomm cuts at least $ 3 billion in costs.
However, I am afraid nobody will be able to take full advantage of such a feat without ruining the long-term value of a business model built around patents at all odds In any case, Qualcomm shareholders do not seem to intend to readily accept the current purchase price Rasgon and many other analysts believe Broadcom's offer may rise to $ 80 or more, and the deal is still cost-effective, which is good for Qualcomm, if so, it would be Qualcomm shares within 10 years Get the highest offer, by the time the company board will continue to reject Broadcom will become very difficult.