We refer investors to our November 3 note, written after Bloomberg and The Wall Street Journal surfaced rumors about the potential bid, but in short, we see a sound strategic rationale for such a deal, and the financial component is especially attractive for Broadcom because we value Qualcomm at $68 per share on a stand-alone basis.
Broadcom president and CEO Hock Tan called the proposal "compelling for stockholders and stakeholders in both companies", and claims a deal would position the combined company as "a global communications leader".
Broadcom is up 2.31% to $279.95 and Qualcomm is up 4.57% to $64.63.
While the value of the proposed bid has yet to be made public it is expected that the offer will be in the range of around $70 to $80 per share, valuing Qualcomm at over $100billion.
It is likely that Qualcomm will reject the bid, as it believes that its value is far below what the company is worth.
Broadcom also is waiting on regulatory approval to purchase San Jose's Brocade Communication Systems for $5.9 billion.
Shares of Broadcom have rallied this year while Qualcomm has fallen, making the target more vulnerable.
It is said that if Broadcom merges with Qualcomm, combination of Broadcom with Qualcomm will make Broadcom third largest Chip makers in the world. The forward price-to-earnings ratio for Broadcom recently stood at 14.6, slightly above its 13.5 average. Broadcom already provides designs for Wi-Fi and Bluetooth chips, and by bringing in Qualcomm it will be able to encompass LTE and 5G capabilities.
Adjacent products are often cheaper when offered by one company, according to standard economic theory, which could be good for phone makers and potentially incline regulators toward allowing the deal, said Henry C. Su, a former Federal Trade Commission trial attorney.
The Rome Masters and Montreal Masters champion fell to Dutchman Robin Haase in a 3-6, 6-2, 6-2 second-round defeat. Speaking after victory on Wednesday, the Spaniard said: "I'm very, very happy for everything".
Away from the financials, Facebook's daily active users (DAUs) and monthly active users (MAUs) saw a YoY increase of 16 per cent. Protecting the Facebook community is more important than "maximizing our profits", Zuckerberg said on the call.
The average twelve-month price target among analysts that have updated their coverage on the stock in the past year is $40.22. BlueMountain Capital Management LLC lifted its position in shares of CalAtlantic Group by 412.2% during the second quarter.
His right shoulder has been sore for a while now and upon examination, it was revealed that Fultz has a muscle imbalance. It doesn't appear that Fultz's injury is as grievous as the other's, but you just never know with the 76ers.
If you depend on your Galaxy S8 or Galaxy S8 + to get through the day, you probably want to stay put on Android Nougat. Android developer blog post suggests that the Android 8.1 Oreo DP2 is scheduled to arrive some time in this month.
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Celtics Storm Back For Road Win Over Thunder
He was just 1-for-9 shooting in the first half, with his lone basket being a 3-pointer with 2:02 to play in the second quarter. The Celtics are one of the best rebounding teams in the league , and are crushing teams in the paint.
Georgia, Alabama rank 1-2 in first playoff standings
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Gender pay gap won't be closed for another 217 years
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Europa League: Arsenal Advance, Everton Dumped
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How much trouble is Tony Podesta in?
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Apple's sales rally may be 'short-lived'
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