History in the Making with the Largest Tech Buyout Ever

Broadcom is poised to become the third largest semiconductor manufacturer in the world, trailing only Intel and Samsung. Will it succeed?

Irvine, California based Broadcom is raising the bar in mergers and acquisitions with its astronomical offer of $130 billion to acquire rival Qualcomm. This could be the largest ever deal in the Technology world, trumping Dell’s purchase of EMC for $67 billion in 2015.

Broadcom made an aggressive and unwelcome offer of $70 per outstanding share, showing its willingness to pay a premium of 28% over the closing price of Qualcomm’s common stock. For a 30-day average price, the premium works out to 33%.

Broadcom’s cash and stock offer stands even if Qualcomm is unsuccessful with its own purchase of NXP Semiconductors. Only time will tell whether Broadcom can successfully ward off any antitrust investigation and become a leading supplier of numerous components used in mobile devices

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