Last month Broadcom, a leading semiconductor supplier made an unsolicited bid to acquire Qualcomm, the chip company whose technology powers virtually every smartphone and smart device on the planet.
Qualcomm's board of directors unanimously rejected Broadcom's $130 billion offer to buy its outstanding stock which equates to $60 in cash and $10 in Broadcom stock. Following Qualcomm's rejection, Broadcom notified Qualcomm that it (Broadcom) intends to nominate 11 independent individuals to replace Qualcomm's board of directors in connection with Qualcomm's 2018 Annual Meeting.
This new board would be positioned to favor Broadcom's aggressive takeover attempts and would support its logic that the acquisition would increase value for stockholders. Given Broadcom's history of acquiring companies and selling its assets to reduce debt, the short-term effect would indeed create value for stockholders. But that's not the whole story.
This takeover could hurt Microsoft, the advancement of cellular technology and future innovations. AI, IoT, cellular PCs and more that comprise the next evolution of connected computing envisioned by Qualcomm and Microsoft could be at stake.
Full story from the WindowsCentral blog...
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