Qualcomm's board of directors argued that the company underestimated its market value.Formal public rejectionAfter Broadcom's $1300 billion acquisition offer, Broadcom CEO Hock Tan also responded, emphasizing that he still maintains the acquisition offer to Qualcomm and believes that this acquisition condition will be the best option for Qualcomm shareholders.
Regarding Chen Fuying's earlier response, in addition to stating that he will continue to make an acquisition offer to Qualcomm and will also acquire it in the form of cash + stock totaling US$70 per share, he also said that the conditions proposed by Broadcom have attracted the attention of many Qualcomm shareholders, and that its own customers have also given positive feedback on Broadcom's acquisition.
However, Qualcomm's board of directors, represented by Paul Jacob, responded that Broadcom's acquisition offer underestimated Qualcomm's actual value, and therefore formally rejected Broadcom's acquisition offer.
Previous market sentiment suggested that even if Qualcomm agreed to the deal, it would still face strict scrutiny from regulators in various regions. Furthermore, given the current market scale of both Qualcomm and Broadcom, the merger would be highly unlikely to receive approval. Furthermore, given Qualcomm's development model, it was unlikely that Broadcom would exploit the situation and acquire Qualcomm, thereby acquiring its wireless technology and becoming a new market leader.
