Calling the Broadcom acquiring Qualcomm just another big news for the electronics industry might still not be close to an apt justification of the significance that this billion dollar semiconductor acquisition holds.
Once this deal is etched, the chip market and industry might never be the same again.
As understood, the Broadcom-Qualcomm Deal deserves all the hullabaloo which is creating far-reaching ripples for the electronics market.
Here are the Biggest pointers of this Blockbuster Deal
- The Broadcom acquisition of Qualcomm would be the largest technology deal on record.
- This deal values Qualcomm at more than $130 billion including debt.
- According to Dealogic, a research firm, the size of the deal ranks as the third biggest overall since 1995.
- Following the bid announcement on November 6, 2017, midday, Qualcomm’s shares has rose to 2.3 percent.
- It rose to 12.7 percent two days before that, when reports of a potential bid from Broadcom were first released.
- Broadcom is offering a combination cash-and-stock deal of $70 per share for Qualcomm. This offer is unsolicited according to Qualcomm statements.
- The deal would be a merger of two of the biggest providers of Wi-Fi chips, ubiquitous technology for accessing the internet.
- Qualcomm-Broadcom’s expertise would create a 5G Powerhouse company well-suited to take a leading role in fifth-generation wireless and networking technology.
- The proposed deal is a significant milestone for the $300 billion semiconductor industry.
- Qualcomm is in the process of acquiring Netherland based NXP Semiconductors for $47 billion.
- These acquisitions together would create one of the world’s largest chipmakers.
- To appease industry and administration cynics in the US, Broadcom will move its headquarters to the U.S. from Singapore.