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Qualcomm Board of Directors Unanimously Rejects Broadcom's Unsolicited Proposal (qualcomm.com)

Posted by msmash on from the thanks-but-no-thanks dept.

U.S. chipmaker Qualcomm on Monday rejected rival Broadcom's $103 billion bid to purchase the company, stating that Broadcom's proposal "dramatically undervalues" Qualcomm and comes with "significant regulatory uncertainty.".

31 comments

  1. Also, it's redundant [Re:Redundant summary] by XXongo · · Score: 1, Funny

    Not only that, but it also says the same thing twice.

    1. Re:Also, it's redundant [Re:Redundant summary] by pak9rabid · · Score: 0

      He likes rape

  2. I'll sell at $75 by Anonymous Coward · · Score: 0

    I'm in at $56, so that would be a tidy little profit. Maybe take a vacation or something.

    1. Re:I'll sell at $75 by Anonymous Coward · · Score: 0

      Of course, the old Louis CK move.

  3. Take that, Broadcom! by Narcocide · · Score: 0

    You pretentious twats.

  4. Hmm.... by Anonymous Coward · · Score: 0

    U.S. chipmaker Qualcomm on Monday rejected rival Broadcom's $103 billion bid to purchase the company, stating that Broadcom's proposal "dramatically undervalues" Qualcomm and comes with "significant regulatory uncertainty." "After a comprehensive review, conducted in consultation with our financial and legal advisors, the Board has concluded that Broadcom's proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty," Qualcomm's Presiding Director Tom Horton said in a statement.

    I get the feeling that the proposal dramatically undervalues Qualcomm and comes with significant regulatory uncertainty.

  5. You can say that again by goombah99 · · Score: 3, Interesting

    Anyone noticed that AVGO (broadcom stock symbol) has a PE ratio of 225-275 while Qualcom is near 20-30.

    It's not that the offer isn't right, and based on qualcoms stock history it's about right, its that if they pay in stock instead of cash it's trading bad shares for good.

    --
    Some drink at the fountain of knowledge. Others just gargle.
    1. Re:You can say that again by Anonymous Coward · · Score: 1

      Anyone notoced that AVGO forward PE is 14-15 while QCOM is around 17-18. So looking forward the AVGO shares are a better deal?

      For shareholders AVGO is a better run company, will make shareholders better gains short term (5-10 years). QCOM may be a better engineering company with better future returns, but your investor is going to have to weigh that up.

      I predict a slightly higher offer and the shareholders will want their short term gain - current management is not going to give it to them, AVGO management will, but central function jobs (admin/HR/IT/etc) will get cut and ofshored.

    2. Re:You can say that again by Anonymous Coward · · Score: 0

      Forward PE's are like press releases. Seldom are they real.

    3. Re:You can say that again by haunebu · · Score: 1

      Amazon's PE ratio is 289. These companies forego profit to invest in their infrastructure and R&D, so PE is expected to be high. Quarterly profits are not their current goal.

      --

      Blue skies, Barthy Burgers, girls...

    4. Re: You can say that again by goombah99 · · Score: 1

      Want to know how they are achieving that low forward PE? Buying companies with low PE using their high PE stock. Thus dropping their High PE towards the company they purchased.

      --
      Some drink at the fountain of knowledge. Others just gargle.
    5. Re: You can say that again by goombah99 · · Score: 1

      If you never make a profit the bottom turtle collapses.

      --
      Some drink at the fountain of knowledge. Others just gargle.
  6. Good by Anonymous Coward · · Score: 0

    Broadcom's wireless driver support for Linux sucks. We don't need Qualcomm going the same way.

  7. Blame the DOJ by Anonymous Coward · · Score: 0

    If it weren't for what the DOJ is doing to the fake news network, Qualcomm wouldn't be so worried.

    1. Re: Blame the DOJ by UnknowingFool · · Score: 2

      So the United States Department of Justice is responsible for Qualcomm's regulatory problems in South Korea, China, and Taiwan? Are you sure about that?

      --
      Well, there's spam egg sausage and spam, that's not got much spam in it.
    2. Re: Blame the DOJ by Anonymous Coward · · Score: 0

      Ever hear of antitrust?

    3. Re: Blame the DOJ by Anonymous Coward · · Score: 0

      The Trump apologists are even worse than Hitler apologists, because they get their panties wadded up even faster but try to deflect their failed masculinity once you show them that their position is fundamentally flawed.

  8. Why? by Anonymous Coward · · Score: 0

    Why 103 billion? Why not 102 or 104?

    1. Re:Why? by Anubis+IV · · Score: 1

      I think it relates more to the prices of their shares. They offered to buy them out at $X/ea., which just happened to come out to $103B.

  9. Going through the motions by Anonymous Coward · · Score: 0

    It's standard procedure to reject the first offered price, it takes one or two bids to get the price right, and then we'll see Qualcomm's stock holders' real feathers.

  10. Qualcomm is in the toilet by Anonymous Coward · · Score: 0

    Once Apple and the FTC finish with Qualcomm nobody will want to buy it. The profits and stocks are dropping.

    1. Re:Qualcomm is in the toilet by xvan · · Score: 1

      Really? What's the alternative for a GPS+GSM MODEM+general-purpose CPU SOC?

    2. Re:Qualcomm is in the toilet by xvan · · Score: 1

      s/GSM/GSM+HSPA+LTE+5G/

    3. Re: Qualcomm is in the toilet by Anonymous Coward · · Score: 0

      Intel

  11. Re:Redundant summary by Anonymous Coward · · Score: 0

    When did that happen?