SAN FRANCISCO, December 9 morning news, CNBC television website quoted sources as saying that Microsoft and Google and other companies are privately expressed concern about the possibility of Broadcom acquisition of Qualcomm.
Sources said the companies are concerned that Apple may have an impact on the deal, and they are concerned that Broadcom is more focused on cutting costs than investing in new technologies.
Qualcomm rejected a $ 105 billion hostile takeover bid by Broadcom last month, and Broadstone later nominated a new member of Qualcomm's board of directors earlier this week when regulators often asked the industry to provide information on whether to approve a deal Qualcomm has said , Worried about antitrust issues that may arise in the deal.
According to sources, Qualcomm has said to Microsoft, Google and others that it should not publicly oppose the deal, and Qualcomm hopes to see whether Broadcom will significantly raise its current offer of $ 70 a share before it takes a tougher stance on possible deals.
For Qualcomm, Broadcom's acquisition may help to improve the relationship with Apple.Currently, Qualcomm to supply Apple iPhone and iPad chips.In January this year, Apple sued Qualcomm patent licensing fees too high, Qualcomm also sued Apple violated Its patents. Qualcomm has applied for or received more than 130,000 patents, a large part of which is related to smart phone technology.
The lawsuit may cause Apple to no longer use Qualcomm chips in future products.
However, according to sources, Broadcom CEO Chen Fuyang said in a non-public occasion, if Broadcom completed the acquisition of Qualcomm, then the dispute with the Apple to resolve optimism.
The objection between Microsoft and Google may be that the good news for Apple is the loss of its competitors.
For Google, many Android phone and tablet makers are using Qualcomm processors, which make up 85% of the smartphone market, according to IDC.
Microsoft recently introduced its first Windows 10 PC equipped with Qualcomm chips and may continue to promote such tablets and variants.Compared to PCs with Intel processors, these devices consume less power and compete with Apple's iPad .
Although Microsoft and Google are also the most important technology companies in the world, Apple and Samsung have a bigger share of sales of Qualcomm and Broadcom chips, and both Microsoft and Google agree that Qualcomm is independent rather than acquired by Broadcom Apple, more in their own interests.
In addition, sources also said that Microsoft and Google have privately expressed their concern that Chen Fuyang would be too concerned about optimizing costs rather than investing in new technologies.
These third-party concerns are likely to affect the deal, Chen said in a statement: 'If we do not have the confidence that our common global customers will welcome the merger of the two companies, then we will not make the offer.'