Broadcom is sweetening its offer to acquire Qualcomm to more than US$123 billion. This comes three months after Broadcom made an initial US$103 billion offer to combine the two semiconductor giants, according to CNBC.
Broadcom, led by Chief Executive Officer Hock Tan, is seeking to build a behemoth chip company to get major market share and lock in billions of dollars being spent by telecom companies to build out the 5G network.
This proposal, which represents Broadcom’s final offer, “includes substantially more Broadcom stock, which will allow Qualcomm stockholders a greater opportunity to participate in the upside created by the combined company’s strategic and operational advantages,” Tan said in a letter sent to Qualcomm, which was made public.
In what would be the largest tech deal in history, Broadcom said it was willing to increase the cash part of the deal if the transaction is not completed within a year after any definitive agreement, and would pay Qualcomm a significant “reverse termination fee” if regulators scuttle the deal.
Broadcom could pay a break-up fee of up to US$10 billion to Qualcomm, CNBC reported citing sources.
Full Content: CNBC
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