14 DAY TRIAL // Broadcom is becoming increasingly aggressive in its attempt to take over chip making company Qualcomm, and Microsoft and Google aren’t very excited about this push.
The two companies have reportedly expressed their concerns over a potential agreement, as they’re both worried that Apple could be the big winner following the deal in detriment to their own products.
Basically, Broadcom wants to purchase Qualcomm for approximately $105 billion (at a price of $70 per share), but while the San Diego-based chip maker has already rejected the offer, it’s believed a $80 per share takeover bid could bring the two closer to a possible deal.
So why are Microsoft and Google concerned over these negotiations? By taking over Qualcomm, the two companies are afraid that Broadcom could favor the relationship with Apple, which in turn would obviously be detrimental to their products using Qualcomm chips.
Microsoft itself has been using Qualcomm’s technology since nearly forever, including on Windows phones which were all powered by Snapdragon processors.
Apple and its Qualcomm offensive
Apple, on the other hand, is involved in a massive legal dispute with Qualcomm, and the two companies accuse each other of patent infringement, with the latter even seeking a ban on the iPhone in the United States.
While Apple is believed to be looking into stepping away from Qualcomm’s tech on future products, Broadcom’s CEO Hock Tan has already stated that should the takeover deal go through, a settlement with Cupertino would certainly be a priority.
Oddly enough, Qualcomm has requested both Google and Microsoft not to make their concerns public, as it’s still evaluating the Broadcom offer, most likely as it seeks to increase the price to $80 per share.
In the meantime, however, Broadcom’s takeover attempt is become even more hostile, with the firm believed to be looking into replacing Qualcomm’s board with its own executives who would favor a potential acquisition at an even lower price.
Neither Microsoft nor Google commented on these rumors, probably as a result of Qualcomm’s request to keep discussions private.