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Qualcomm rejects $105B takeover bid from Broadcom

Spurning what would have been the largest tech acquisition of all time, Qualcomm board says the bid undervalues the mobile phone chipmaker.

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David Katzmaier Editorial Director -- Personal Tech
David reviews TVs and leads the Personal Tech team at CNET, covering mobile, software, computing, streaming and home entertainment. We provide helpful, expert reviews, advice and videos on what gadget or service to buy and how to get the most out of it.
Expertise A 20-year CNET veteran, David has been reviewing TVs since the days of CRT, rear-projection and plasma. Prior to CNET he worked at Sound & Vision magazine and eTown.com. He is known to two people on Twitter as the Cormac McCarthy of consumer electronics. Credentials
  • Although still awaiting his Oscar for Best Picture Reviewer, David does hold certifications from the Imaging Science Foundation and the National Institutes of Standards and Technology on display calibration and evaluation.
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David Katzmaier
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Qualcomm to Broadcom: Take your billions and go home.

The board of directors at Qualcomm, the world's largest maker of chips for phones, on Monday unanimously rejected a massive unsolicited takeover bid from Broadcom, which makes chips for everything from cable modems to set-top boxes and digital video recorders .

"Broadcom's proposal significantly undervalues Qualcomm relative to the company's leadership position in mobile technology and our future growth prospects," said Paul Jacobs, chairman of Qualcomm's board, in a statement. Qualcomm also said that the deal would come with significant regulatory uncertainty.

Broadcom said it remains fully committed to pursuing the acquisition.

"We continue to believe our proposal represents the most attractive, value-enhancing alternative available to Qualcomm stockholders and we are encouraged by their reaction," said Broadcom CEO Hock Tan in a statement. "Many have expressed to us their desire that Qualcomm meet with us to discuss our proposal."

The acquisition would have been the biggest in tech history, surpassing AOL's acquisition of Time Warner in 2001. The combined company would have been the third-largest semiconductor maker in the world, trailing only Intel and Samsung.

Update, 11:40 a.m. ET: Added statement from Broadcom.