Broadcom (NASDAQ:AVGO) announced a proposal to acquire all of the outstanding shares of Qualcomm (NASDAQ:QCOM) for $70 per share in cash and stock, for a total of approximately $130 billion. Under the proposal, the $70 per share to be received by Qualcomm stockholders would consist of $60 in cash and $10 per share in Broadcom shares.
"Broadcom's proposal is compelling for stockholders and stakeholders in both companies. Our proposal provides Qualcomm stockholders with a substantial and immediate premium in cash for their shares, as well as the opportunity to participate in the upside potential of the combined company," said Hock Tan, president and CEO of Broadcom. "This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products. We would not make this offer if we were not confident that our common global customers would embrace the proposed combination. With greater scale and broader product diversification, the combined company will be positioned to deliver more advanced semiconductor solutions for our global customers and drive enhanced stockholder value."
Broadcom itself was purchased by Avago in 2015.
