Qualcomm rejects Broadcom's $105 billion takeover bid (Updated)

Update: It was originally reported that Broadcom was offering $130 billion, though the final bid was closer to $105 billion. We’ve updated our article to reflect the change.

Original post: Qualcomm is one of the biggest chipmakers in the world. Its processors power almost every Android phone released in North America and the Snapdragon 835 processor, its current flagship chip, has been used in all but a few flagship phones this year. Its 600 series and 400 series of chips also power the majority of mid and budget tier phones on the market today.

Recently, Broadcom made a gigantic bid for the San Diego-based chipmaker. The bid was in the region of $105 billion and would’ve made Broadcom the dominant power in the wireless industry. Today, Qualcomm officially rejected the unsolicited bid. In its statement, Paul Jacobs, the Chairman of the Board, expressed that the bid had “significantly undervalued” the company.

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.

Qualcomm is betting big on the future with this rejection. It sees itself becoming even more powerful in the industry and more valuable as carriers transition from 4G to 5G technologies. Additionally, it is involved with the Internet of Things (IoT), automotive, and edge computing which can all be growth industries.

We’ll keep our eye on this story and bring you updates as they become available.