Broadcom drops Qualcomm acquisition bid after Trump block

17 March, 2018, 01:37 | Author: Franklin Nunez
  • Qualcomm

In an extra-ordinary turn of events on Monday, President Donald Trump blocked Broadcom's $117 billion bid for Qualcomm citing it as a threat to national interest. The directive stated that there is "credible evidence" that Broadcom "might take action that threatens to impair the national security of the United States" through the buyout.

Broadcom Ltd., the Singapore-based company that spent much of the past four months attempting to acquire fellow chip maker Qualcomm Inc., on Thursday said quarterly profit surged as it booked a one-time benefit of almost $6 billion tied to the USA tax overhaul.

Although its name isn't widely known outside the technology industry, Qualcomm is one of the world's leading makers of the processors that power many smartphones and other mobile devices.

The Presidential order is seen as a move to shelter U.S. companies from foreign competition. It also noted that Broadcom has reduced spending on research and development at the businesses it acquires, a practice that could make Qualcomm less innovative. Unlike Qualcomm, Tan said, Broadcom financed its innovation through "lawful practices".

Audi to build four-door electric sports vehicle in 2020
It seems like you're just not cool in Europe anymore unless you are working on developing an electric sports vehicle of some kind. The new E-Tron will be built at Audi's Bollinger Hofe facility near Neckarsulm, Germany, where the R8 supercar now resides.

In an attempt to ease those worries, Broadcom last week pledged to make the USA a leader in the race to build 5G networks, saying it would create a $1.5 billion fund to support the effort if took control of Qualcomm.

Qualcomm had come up with many pretty wild arguments against the deal, but it never landed on the one proffered by CFIUS-a lack of R&D for 5G could give Huawei an edge to dominate the 5G world, threatening US national security.

Wednesday's move is a formality since the presidential order issued Monday had ensured the deal would be killed in any United States regulatory review.

Now that Broadcom has been shoved aside, Qualcomm will be under pressure to prevent its stock price from sinking while trying to complete its own proposed takeover - a proposed $43 billion purchase of NXP Semiconductors. Led by Tan, a US-educated Malaysian entrepreneur, Broadcom grew largely through acquisitions. Broadcom will continue to move forward with its redomiciliation process and will hold its Special Meeting of Stockholders as planned on March 23, 2018.

FBI Recommends to Fire Andrew McCabe
The New York Times submitted the February 2017 story to the George Polk Awards in Journalism as part of a 12-story package. Justice Department official in an effort to preserve his pension, according to a source familiar with the matter.

In a letter, the CFIUS had confirmed the national security concerns. A few weeks after the visit, when Tan promised to headquarter his company in the U.S., Broadcom announced the acquisition of Brocade was complete on November 17.

Trump's order came after a government panel tasked with reviewing the national security implications for business deals disclosed serious concerns about the bid.

These actions signal the Trump administration's aggressive review posture for Chinese (and other) foreign investment into USA technology firms under an ever evolving, expanding view about national security.

Police 'looking into' incident involving former Liverpool defender
Carragher after the disgusting incident had phoned the girl and her father apologising to them. I spoke to the family last night and I want to apologise as much as I can'.

Recommended:



Popular

United Kingdom murder probe launched over death of Russian businessman
The retired Russian executive was found dead on Monday evening at his home in southwest London, where he had lived for two years. Counter-terrorism police are investigating the death of Mr Glushkov , who was found at his home in south-west London on Monday.

Eric Weddle pitches Michael Crabtree to the Ravens
However, that deal had to be scrapped after Grant failed a physical on Thursday night . The Ravens also have plenty other links to Crabtree.

Authorities release video showing outside of Parkland high school during shooting
Peterson's attorney, Joseph DiRuzzo, did not immediately respond to a request for comment. President Donald Trump has called Peterson a "coward" for not entering the building.

Pennridge Students Face Consequences For Wednesday Walkout
They lamented that too many young people have died and that they're exhausted of going to school afraid they will be killed. She said the point of the walkout was to protest the lack of gun control measures coming from Congress.

Spotify Sets April 3 as First Trading Day
Spotify's F-1 revealed that it finished 2017 with 71m paying subscribers and 159m monthly active users (MAUs). With Spotify available on PlayStation Music, users can stream music on their PlayStation 4 while gaming.

Flight attendant didn't realize dog was in overhead bin, United says
United has apologized, say they assume "full responsibility" and have launched an investigation into what happened. However, prosecutors won't decide whether or not to press charges until the investigation is completed.

EU's Tusk urges Trump to revive EU-US trade talks
US President Donald Trump is reportedly considering imposing tariffs on up to 60 billion dollars of Chinese imports. Volume on US exchanges was 6.53 billion shares, compared to the 7.14 billion average over the last 20 trading days.

United announces changes after pair of high-profile dog mishaps
It turns out that the airlines had swopped the two dogs around, and Irgo was on his way to Japan . According to the Department of Transportation, 24 animals died on planes in the USA past year .

With Kyle Kuzma (ankle) out, Isaiah Thomas to start for Lakers
Although it may seem unusual teammates fighting on the court is well-received, the Lakers appear to have this under control. If I see something, I'm going to say something, that goes vice versa, if they see something they should say something.

Case Keenum To Sign With Denver Broncos
Denver is in the market for a quarterback after going through last season with Trevor Siemian , Brock Osweiler and Paxton Lynch . We've talked about the Vance Joseph connection here before as a reason the Broncos remained an undercover option for McCarron.