- Broadcom is considering making a takeover offer for Qualcomm that would value the chipmaker at more than $100 billion, Bloomberg reported on November 3, citing people familiar with the matter. Qualcomm's market value is $90 billion, according to FactSet. The company's modem chips have been used by Android manufacturers and by Apple since the very first iPhone. Yesterday it filed a suit against Apple in a California district court claiming that Apple breached its contract with Qualcomm by trying to pass information about Qualcomm's modem chip to other Apple employees who were working with Intel's component. Qualcomm, in suing Apple, says it is not obligated to license those like to does with industry standard technology.
At issue between Qualcomm and Apple are licensing fees the chipmaker charges for patents that cover the basics of how mobile phone systems work. This legal skirmish has resulted in the decimation of Qualcomm's profits, and that is just bad news for shareholders and their dividends.
Qualcomm is not aware of the details of Broadcom's bid, and it is far from certain whether it will entertain this deal, the sources said. However, it's faced separate but related lawsuits and fines over its misuse of its market position from the US Federal Trade Commission and from regulatory authorities overseas, including a recent $774 million fine from in Taiwan.
Stock of San Diego-based Qualcomm jumped 12.7 percent to close at $61.81.
Wind advisory tonight and tomorrow for the Midstate
But for Halloween on Tuesday , the city is slated to be drier and brighter, with daytime temperatures in the upper 50s. Smaller creeks and streams along with poor drainage areas and low-lying areas will be the most prone to flooding.
Like Qualcomm, Broadcom is a major supplier of parts for Apple products.
Broadcom did not immediately respond to requests for comment. It's entirely unclear what would happen to Qualcomm's legal fight with Apple if it does sell itself, but it's likely Broadcom would settle the dispute to avoid incurring more legal costs.
Broadcom, a major supplier of iPhone parts that counts Apple among its largest customers, said this week it will return its headquarters to the USA from Singapore.