Listen: George Chamberlin Explains Today's Qualcomm News

Shares of Qualcomm have spiked after reports from the Wall Street Journal and Bloomberg News that rival chipmaker Broadcom may be preparing a bid. Bloomberg says it could be for more than $100 billion.

Qualcomm declined to comment. Broadcom did not respond to questions. The two companies are already involved in big deals from about a year ago. Regulators are still reviewing Qualcomm's $38.1 billion proposed acquisition of NXP Semiconductors for $38.1 billion. 

Listen below as KOGO's Business Editor George Chamberlin breaks down the story.

 


Broadcom's plan to move its home address to the U.S. from Singapore would free its $5.5 billion deal for U.S. network provider Brocade Communications Systems from a review by the Committee on Foreign Investment in the United States.

Stock of San Diego-based Qualcomm jumped 12.7 percent to close at $61.81. Broadcom added 5.5 percent to $273.63.

An offer of $70 a share in cash and stock for the maker of technology for mobile devices could be coming in a matter of days, perhaps as soon as this weekend, the reports said.

Like Qualcomm, Broadcom is a major supplier of parts of Apple products. Qualcomm and Apple have been embroiled in a dispute over royalties that has landed the two corporations in court.

Both firms have been in the news the last few days.Qualcomm reported a plunge in net earnings for the fourth quarter of its fiscal year, to $168 million, or 11 cents per diluted share, compared to $1.6 billion, or $1.07 per diluted share, in the same period in 2016. For the full fiscal year, net income was $2.47 billion, or $1.65 per diluted share, compared to $5.7 billion, or $3.81 per diluted share, last year.

Broadcom, announced it would return its corporate headquarters to San Jose.

The impact of a takeover on San Diego wasn't immediately clear, but it could be tremendous. Qualcomm is one of the few major corporations with a global reach to be headquartered in a city known mainly for tourism, and smaller defense and life sciences firms.

The company is one of the region's largest private employers, and the family of co-founder Irwin Jacobs is one of the area's most generous philanthropists.

Photo Credit: Getty Images

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