There is a little doubt why Qualcomm might be worth $105 billion to Broadcom. The reason is that your smartphone is utilizing technology from Qualcomm. Snapdragon process might be a familiar term for many as they power most of the android phones. But Qualcomm also manufactures chips that grasp conveyance for most manufacturers’ smartphones and it possesses patents that obtain license fees from the rest. This fact was not a surprise for Broadcom another networking company that is deeply encompassed in mobile communications particularly in WiFi chips as well as mobile processors.
The cooperation is clear enough that Broadcom is suggesting creating Qualcomm its latest acquisition target if antitrust controllers are disposed to endorse the deal. But Qualcomm is not satisfied with Broadcom’s offer pointing that it underestimates the company. The $70 per share that Broadcom is providing is an important surcharge over what Qualcomm is presently dealing for but it’s within a close reach to uniformity when compared with stock price last year.
Right from that time Qualcomm has been showered by lawsuits, investigated by regulators and is on a shaky ground as it can lose Apple as a customer. These events have had effect on Qualcomm’s stock price. Apple is an enormous bother for Qualcomm since the company has shifted its base to Intel for the modems to extend its hold to cellular networks. The company’s patent is still applicable to Intel chips but here Apple is battling pronouncing that Qualcomm’s licensing fees are troublesome.