Last week, Broadcom made national news by offering Qualcomm $130 billion to acquire the company.
With that amount of money, one has to imagine that Qualcomm at least considered the offer. But as it turns out, not even $130 billion is enough to nudge Qualcomm into an acquisition. According to the company’s official statement released today, Qualcomm’s board of directors “unanimously rejects” the “unsolicited proposal” put on the table by Broadcom.
Going further, Qualcomm CEO Paul Jacobs says that the $130 billion offer “significantly undervalues” the company. Tom Horton, the company’s Presiding Director of Qualcomm, Inc., also said that the uncertainty of the proposed acquisition also had something to do with the rejection.
Here’s Jacobs on the acquisition offer:
“It is the Board’s unanimous belief that Broadcom’s proposal significantly undervalues Qualcomm relative to the Company’s leadership position in mobile technology and our future growth prospects.”
$130 billion is a massive number, but if Broadcom sees hope in the future where it brings Qualcomm under its wing, it could very well come back at a later date with an even higher number. Either that, or this may be the last we hear of this potential reality. It doesn’t sound like Qualcomm is all that excited by the idea, though.