It doesn't look like Broadcom's massive $130 billion acquisition of Qualcomm will be an easy deal. Broadcom first made the unsolicited offer for Qualcomm on Nov. 6, offering $70 per Qualcomm share.
On Nov. 13, Qualcomm's Board of Directors finally responded to the offer, with rejection.
"It is the Board's unanimous belief that Broadcom's proposal significantly undervalues Qualcomm relative to the Company’s leadership position in mobile technology and our future growth prospects," Paul Jacobs, executive chairman and chairman of the board of Qualcomm Incorporated, stated.
Steve Mollenkopf, CEO of Qualcomm Incorporated, added in a statement that no company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry.
"We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G," Mollenkopf said.
For its' part, Broadcom isn't backing down and has publicly issued a response to the Qualcomm rejection, nothing that it remains fully committed to the acquisition of Qualcomm.
"This transaction will create a strong, global company with an impressive portfolio of industry-leading technologies and products, and we have received positive feedback from key customers about this combination," Hock Tan, president and chief executive officer of Broadcom, stated. "We continue to believe our proposal represents the most attractive, value-enhancing alternative available to Qualcomm stockholders, and we are encouraged by their reaction."
"It remains our strong preference to engage cooperatively with Qualcomm's Board of Directors and management team," Tan added.
Broadcom is still in the process of finalizing its $5.9 bid for networking vendor Brocade, while Qualcomm is still in the process of acquiring silicon vendor NXP for $47 billion.
Sean Michael Kerner is a senior editor at EnterpriseNetworkingPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.