Broadcom is reportedly exploring a massive acquisition of $80 billion Qualcomm

People crowd into the Qualcomm booth to view a series of new products during the annual Consumer Electronics Show

Also, the $100 billion buyout would be the largest purchase of a chipmaker, so Broadcom and Qualcomm will need to make strong cases for such a purchase.

Qualcomm shares rose as much as 19 percent in NY in their biggest intraday move since October 2008, after Bloomberg News first reported the takeover plans.

As for Broadcom, its CEO Hock Tan has a huge appetite when it comes to acquisitions and states that he is interested in more deals, which could be halted thanks to the intervention of USA regulators since Qualcomm is a US -based technology company.

No final decisions have been made and there is no guarantee a deal will go ahead. Qualcomm's shares shot up almost 13 percent in midday trading today after the report, for a valuation of about $92 billion.

- Shares in Broadcom, which makes semiconductors for networking and wireless equipment, were up almost 5 percent in afternoon trading on the Nasdaq.

The stock of San Diego-based Qualcomm shot up 12% to $61.65 a share in midday trading Friday after reports surfaced that Broadcom was considering making an unsolicited offer. Broadcom, created in 2016 when Avago Technologies Ltd. acquired Broadcom Corp. for $37 billion, has built itself from a former Hewlett Packard division into one of the largest chipmakers via a string of purchases. Shares are down almost 16% this year due to legal battles with Apple and the loss of royalties from Apple and an unnamed second licensee. At $70 a share, an offer would value Qualcomm at $103 billion. Since then, though, smartphone sales growth has slowed and Intel has succeeded in placing its modems in some iPhone models. Broadcom now lists Singapore and San Jose as co-headquarters. For one, Qualcomm is in the midst of a legal dispute with Apple, with the dispute having started in January when Apple sued Qualcomm for $1 billion.

Qualcomm faces a multinational legal battle with Apple Inc over Qualcomm's licensing terms to Apple.

It's unclear how the deal could affect Qualcomm's own blockbuster $40 billion takeover of NXP Semiconductors, which was announced a year ago but still hasn't been completed. Qualcomm, a major supplier of chips for wireless handsets, was up 14 percent.

Aside from the financial challenges of such a large deal, Broadcom may also encounter close regulatory scrutiny.

Such a deal would cap an ongoing consolidation of the semiconductor industry.



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