1. Intel and Broadcom can form a large U.S. alliance, and Trump is sure to be most happy;
According to the micro-network news, the global semiconductor industry is still in the ascendant. After Broadcom and Qualcomm are negotiating the consolidation, it is reported that Intel intends to acquire Broadcom. This is a move that Intel can make up for the lack of mobile phone technology on the one hand; The Grand Alliance, which can resist the intrusion of South Korea's Samsung, is a double-edged sword.
Broadcom’s announcement of the acquisition of Qualcomm at the beginning of the year was originally considered an impossibility task, but with the release of goodwill from Qualcomm, Botong was invited to negotiate the purchase price code. There is an eight-character word. As the two major semiconductor giants have a total market value of more than US$200 billion, they will be successfully consolidated. Jumped to the world's third-largest chip maker, second only to Intel, Samsung, which is like a sting on Intel.
"After catching crickets, the yellow tits are in the back." Yesterday it was reported that Intel’s evaluation of the acquisition of Broadcom had the opportunity to win Broadcom and Qualcomm in one fell swoop, and to address the threat posed by “New Broadcom”. Second, if Intel wins Broadcom, it will form Super Big Mac, can greatly open the gap with South Korea's Samsung.
Secondly, in the past, Intel used its PC as a good tool. Although it has been actively investing in the development of mobile phone chips for many years, it has never been improved. If we can win Broadcom and Qualcomm this time, we can make up for the gaps in mobile phone and communication technology, which are extremely complementary.
In addition, the biggest headwind in the acquisition of Qualcomm has now become the U.S. government. Since Broadcom’s headquarters are in Singapore, it raised concerns in the U.S. and it was reported by the CFIUS that the case may pose a risk to U.S. national security, making the merger case There are variables. Industry analysis, if Intel hands off, it can just form a justified “Greater U.S. coalition.” For US President Trump who emphasizes U.S. priority, it is definitely the most enjoyable option.
2. Pass Intel to consider the acquisition of Broadcom Chairman of Qualcomm was exempted;
Micronet reported on March 10 According to a Wall Street Journal, informed sources said that Intel is considering a series of acquisitions in response to Broadcom’s hostile takeover of Qualcomm, which may include the acquisition of Broadcom.
If Broadcom and Qualcomm merge, it will become the largest technology acquisition in history. After the merger, Broadcom will become the world’s third largest chip maker after Intel and Samsung. This seems to Intel to pose a serious threat to its future. , Intel said it has been paying close attention to this acquisition, and does not want the transaction to be successful, and if the final acquisition is achieved, Intel will intervene by issuing a bid to Broadcom.
An Intel spokesperson stated: 'We have made important acquisitions in the past 30 months - including Mobileye and Altera - our focus is to integrate these acquisitions and make them successful for our customers and shareholders.' There is no response to the acquisition of Broadcom.
Wang Yanhui, the secretary general of China Mobile, said that Intel may be considering whether this solution is feasible, but even if Qualcomm is forced to agree to be acquired by Broadcom this year, it will wait until next year through national government censorship. Intel will also need to acquire the fastest time in the second half of next year.
In addition, Qualcomm announced on March 9 that the executive chairman of the company, Jacob, had been removed from office and no longer served as Chairman of Qualcomm, but the board seats will remain.
Jacob has been chairman of Qualcomm since 2009. During his tenure as chairman, he led the huge patent fight with Nokia and made Qualcomm earn huge profits. At the same time, he chose to invest a lot of money in 4G R&D during the economic crisis of 2008. Let Qualcomm get rich returns on the 4G LTE network during 2010-2014.
Qualcomm’s move may send a signal that when the company is considering Broadcom’s proposed $117 billion acquisition bid, its board of directors will become more independent. However, analysts also said in an interview that Jacob’s implementation was eliminated. The post of chairman should not be seen as a significant change in Qualcomm’s position regarding Broadcom’s acquisition, because since 2014, Jacob’s CEO’s position was handed over to Steve Mollenkopf. He has gradually faded out of the company's management.
In the previous part of the shareholders’ vote, Qualcomm CEO Steve Morenkov received only the countdown to 17 candidates (the original 11 board members of Qualcomm and the 6 members nominated by Broadcom). Second, it shows that he may lose his seat in the board of directors. Paul Jacobs, chairman of the board of directors, is also in danger. If the two cannot become Qualcomm directors, it will lose the position of Qualcomm management in the future board of directors.
In addition, Broadcom sent a letter to the U.S. Congress on the 9th, stating that if the U.S. government approves its $117 billion acquisition of Qualcomm’s transactions, it will ensure that future new companies will not sell any important assets that may involve national security to any foreign company. In order to dispel the concerns of the U.S. government, it approved the acquisition of Qualcomm. (Proofreading/Liu Yang)
3. "Wall Street Journal": Intel or the acquisition of Broadcom, which rose 6% after the close;
According to a report in the Wall Street Journal on Friday, Intel is weighing a series of acquisition plans, including the acquisition of Broadcom.
At the same time, Broadcom is actively bidding for Qualcomm. If Broadcom's acquisition of Qualcomm is successful, Intel will face more powerful competitors. However, people familiar with the matter told the Wall Street Journal that Intel may not make an acquisition.
According to Wall Street, the premise that Broadcom intends to acquire the case of Qualcomm has become the largest merger and acquisition case in the history of the semiconductor industry and the entire technology industry. The total market capitalization of the two major semiconductor giants will exceed 200 billion US dollars. If the two companies merge successfully, the new company will become only Second largest chip maker in the world behind Intel and Samsung Electronics.
An Intel spokesperson stated: 'We have made important acquisitions in the past 30 months - including Mobileye and Altera - our focus is to integrate these acquisitions and make them successful for our customers and shareholders.' She did not respond to the acquisition of Broadcom.
After the announcement, Intel's share price fell 1% in after-hours trading, and Broadcom's share price rose more than 6%. Qualcomm's share price has not changed much.
However, Broadcom's merger and acquisition case still has variables.
On March 6, US time, Qualcomm announced that it had received a letter from Qualcomm and Broadcom from the U.S. Department of the Treasury. The letter states that after review by the US Foreign Investment Commission (CFIUS), Broadcom’s attempt to acquire Qualcomm may constitute a threat to US national security. risk.
The previous day, Qualcomm announced on Monday that according to the CFIUS Directive, Qualcomm postponed the shareholders’ and board of directors elections for at least 30 days, and the company’s general meeting of shareholders will be postponed until April 5 of this year. In addition, Broadcom is expected to win the Qualcomm Board of Directors election All six seats being sought, if Broadcom acquires these seats in the final vote, will have the right to negotiate its acquisition of Qualcomm’s $117 billion.
CFIUS is a federal government committee composed of the heads of 11 government agencies and 5 observers. The members are from the Ministry of National Defense, the Ministry of State, and the Department of Homeland Security. The US Treasury Secretary serves as chairman of the committee and has the power to stop the acquisition of U.S. companies by foreign companies. Trading, but under normal circumstances, CFIUS review will not begin until the transaction is completed.
Headquartered in Singapore, Broadcom plans to move its headquarters from Singapore to the United States in mid-May this year in order to evade regulatory hurdles caused by mergers and acquisitions of foreign companies and thereby facilitate mergers and acquisitions.
According to the analysis of financial blogger ZeroHedge, CFIUS intervenes in the Qualcomm M&A case, which shows that the U.S. government is serious about protecting U.S. intellectual property. Qualcomm is not only the largest U.S. chip maker, but also the only U.S. company that can compete with foreign manufacturers on 5G technology. Manufacturers, and President Trump listed 5G technology as one of the national security priorities.
4. Intel indirectly denied that the acquisition of Broadcom currently focuses only on the integration of previously acquired assets;
Tencent Technology reported that according to foreign reports, the "Wall Street Journal" reported on Friday that Intel may acquire chip maker Broadcom, Intel spokesman said that the company is currently focused on the integration of the previous merger and acquisition assets, rather than large-scale mergers and acquisitions .
The Wall Street Journal quoted sources as saying Friday that it feared that Broadcom’s hostile takeover of Qualcomm would pose a threat to the company’s business, leading Intel to consider acquiring Broadcom. In response, Intel’s spokesman stated that “the company will not market rumors and speculations. Leave a comment, but the company is currently focused on integrating previous M&A assets.
'In the past 30 months, we have completed some major M&A transactions, including the acquisition of Mobileye and Altera. We are currently focused on integrating the aforementioned M&A assets to enable them to successfully bring value to our customers and shareholders,' said an Intel spokesman. In the statement said. As of now, Broadcom has not commented on this.
According to the Wall Street Journal, Intel started thinking about acquiring Broadcom since the end of last year and contacted its consultants. However, considering the complexity of the transaction, Intel is not expected to actually acquire Broadcom.
The current share prices of Broadcom and Qualcomm are all around 100 billion U.S. dollars. Once the acquisition is completed, the new company after the acquisition of Qualcomm will become a super 'megacrite', change the existing pattern of the entire chip industry, make Broadcom become the industry third, second only to Intel and Samsung Electronics will have an absolute monopoly in the field of wireless communication chips. This will greatly affect the downstream industries, including terminal manufacturers such as mobile phones and computers, as well as TSMC, SMIC, and other foundries.
Broadcom announced in early November last year that it has submitted an offer to Qualcomm to acquire Qualcomm’s entire outstanding shares at US$60 per share in cash plus US$10 worth of company stocks. The total transaction price is US$103 billion. If Qualcomm accepts the offer, This will be the largest M&A deal in the history of technology. Broadcom said at the time that the company would relocate the company's headquarters to the United States, but in order to indicate when it will begin relocation. Broadcom emphasized that the company’s acquisition of Qualcomm’s transactions was regulated. The approval of the department is full of confidence, and because the company plans to relocate its headquarters to the United States, the transaction will not face a detailed investigation of national security. After a comprehensive assessment, Qualcomm officially rejected Broadcom’s proposed 103 billion US dollars purchase offer on November 13.
Subsequently, Broadcom raised the offer to acquire Qualcomm to US$82 per share in early February for a total price of US$121 billion. Of these, US$60 was paid in cash and the balance was reflected in stocks. Broadcom said that the $82 per share offer It is the 'best and final' quote, and said that after the merger and acquisition, two Qualcomm directors were invited to join the board of directors of the new company. The debt of Qualcomm was taken into account and the total price of this transaction reached US$145 billion.
However, after Qualcomm announced that it would acquire NXP for a total price of US$44 billion, Broadcom decided to adjust Qualcomm’s offer. Botong believes that by raising the quotation, Qualcomm’s board and management will be equivalent to a Qualcomm of US$4.10 per share. The stock (worth 6.2 billion U.S. dollars) was transferred from the shareholders of Qualcomm to the shareholders of NXP. For this purpose, Broadcom also adjusted its quotation for Qualcomm. After the adjustment, Broadcom will acquire Qualcomm at a price of 79 U.S. dollars per share, including cash. Part of the 57 US dollars, the remaining 22 US dollars for the stock. Broadcom also pointed out that if Qualcomm eventually unable to complete the acquisition of NXP transactions, the acquisition of Qualcomm's offer will automatically increase by 3 US dollars, that is, to return to 82 US dollars per share offer.
Of course, Intel's acquisition of Broadcom's transaction will surely incur investigations from global antitrust regulators. The reason is that Intel’s current market value is already close to US$240 billion. The company’s merger with Broadcom will significantly change the competitive landscape of the chip market.
Because of concerns that Broadcom’s hostile takeover of rival Qualcomm’s transactions endangered US national security, the US Foreign Investment Committee (CFIUS) has halted Qualcomm’s original shareholders’ meeting on Tuesday and began a detailed investigation of the case. At the same time, Broadcom did not wait and see, but took the initiative to adopt a strategy. Broadcom said on Wednesday that the company is committed to leading the United States in the global 5G competition, and plans to invest 1.5 billion US dollars for training American technicians to ensure that The United States is leading in the future of wireless technology.
Broadcom also said at the time that Broadcom was a U.S. company with a strong lineage of great U.S. flagship technology companies such as Hewlett-Packard, AT&T, Broadcom and Brocade. In addition, Broadcom is now moving its headquarters back to the United States. In the final stage, the entire process is expected to be completed by May 6, 2018. After completing the acquisition of Qualcomm, Broadcom expects to have more than 25,000 employees in the United States, and they will work to make Broadcom a leading global communications semiconductor. Enterprise. Broadcom wrote a letter to the US Congress on Friday, promising that if the $171 billion acquisition of chip maker Qualcomm is approved, the company will not sell any key national security assets to foreign companies. (Compilation/Ming Xuan)
5. Wall Street Journal: Intel is considering buying Broadcom
Tencent Technology News March 10, according to foreign media reports, "The Wall Street Journal" quoted informed sources as reported that Intel is considering a series of acquisitions, including the acquisition of chip maker Broadcom (Broadcom).
After the above information was released, Intel's stock price fell 1% in after-hours trading, and Broadcom's stock price rose more than 6%. Qualcomm's share price has barely changed.
At the time of the news that Intel intends to acquire, Broadcom is actively seeking a hostile takeover of Qualcomm. If the transaction succeeds, the merged company becomes Intel’s bigger competitor.
In an interview with The Wall Street Journal, sources said that if Broadcom's acquisition of Qualcomm's transaction may be successful, Intel may consider making a bid to Broadcom. However, these sources said that such a purchase cannot be guaranteed. Some people even claimed that this It is impossible.
An Intel spokeswoman said that the company will not comment on trade rumors. She said in the statement: 'In the past 30 months, we have made several important acquisitions, including Mobileye and Altera. Our focus is to integrate these Acquisitions that allow them to benefit our customers and shareholders. '
Broadcom did not immediately respond to the press request for comment. However, there are reports that Broadcom's bid for Qualcomm has been in trouble, may have to temporarily abandon the current transaction, and later come back.
According to another Reuters report, when asked about the potential acquisition of Broadcom by the media, Intel stated that the company is concerned with many mergers and acquisitions before the integration.
The company has implemented major mergers and acquisitions in the past 30 months and will focus on making those mergers and acquisitions successful.
Intel declined to comment on speculation related to acquisitions and mergers.
Prior to this, the Foreign Investment Committee of the US Treasury Department (CFIUS) had expressed concerns about Broadcom's acquisition of Qualcomm, which is unprecedented for transactions that have not been officially announced or agreed.
However, people familiar with the matter claimed that Broadcom is not expected to abandon the bidding target. The company will try to reach a settlement with the regulators and resolve their concerns.
In judging whether to approve a transaction, regulators often consult the industry’s internal knowledge. Informed sources said that technology giants such as Microsoft and Google are also worried about the deal.
Sources said that these companies are concerned about Apple’s potential influence in the transaction, and are concerned about Broadcom’s reputation for cutting costs and reluctance to invest in new technologies.