Broadcom Offers $121 Billion To Buy Qualcomm, Investors Were Not Impressed

At face value, $121 billion might seem like a lot of money, but this doesn’t seem to be the case with everyone. Specifically, this amount of money didn’t faze investors of the giant chip maker Qualcomm when it was offered by another chip making company, Broadcom. The latter has been trying to buy the former since last year, with the latest offer being quite a bit bigger than the previous $105 billion placed on the table.

Broadcom made its new offer on Monday, The Wall Street Journal reports, placing the amount at $82 a share. The money would be paid partially in cash and the rest in stock, with the ratio kept relatively the same as last time. This could potentially be the single biggest technology deal in history, but it seems that it’s just not enough to convince the investors.

This is a bit confusing to the owner and CEO of Broadcom, Hock Tan, who can’t seem to understand why the deal isn’t being finalized right now. $121 billion is a huge amount of money and investors are supposed to like money.

“Any rational board would consider what we’ve put forward,” Tan told The New York Times over the phone.

With regards to what this deal could potentially mean, an acquisition would create one of the biggest monopolies in the tech industry. Qualcomm currently provides the components to a majority of smartphones and mobile devices being manufactured and this is despite its current legal spat with Apple.

If Broadcom does end up acquiring its target, it could mean that no other competitor could come close to touching the company in terms of the territory it could cover. Of course, there are no guarantees since trouble could be brewing for Qualcomm right now.

According to recent predictions by analysts, Apple could start relying only on Intel for its chips moving forward. This which would put Qualcomm in a tight spot.