Broadcom weighs $100 billion bid to buy rival chipmaker Qualcomm

Broadcom weighs $100 billion bid to buy rival chipmaker Qualcomm

The biggest ever takeover of a chipmaker could be brewing.

The news, reported by Bloomberg today, would value Qualcomm shares at around $70, and investors immediately responded enthusiastically by sending Qualcomm stock up almost 14 percent in what Bloomberg says is the largest stock movement for the company in almost a decade.

Qualcomm (NASDAQ:QCOM) shares are up 5.58% after rumors that Broadcom (NASDAQ:AVGO) is exploring a deal to purchase the chipmaker. Nothing has been hammered out yet and there's no guarantee that a deal will materialize.

Shares of Qualcomm surged roughly 15% on the news, while Broadcom's stock climbed more than 3%. Broadcom rose 4.7 percent, for a market valuation of $111 billion.

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That gave Qualcomm a current total market value of $91 billion.

Qualcomm declined to comment, while Broadcom did not immediately respond to a request for comment. The Wall Street Journal quickly confirmed the news in its own report.

Broadcom keeps a presence in Irvine and a USA headquarters in San Jose.

Formerly known as Avago Technologies, Broadcom Limited was created past year after Singapore-based Avago acquired Broadcom Corporation for $37 billion. Apple, in suing Qualcomm, thinks the company is nonetheless overcharging for use industry standard patents, which the law requires be licensed out on fair, reasonable, and non-discriminatory (or "FRAND") terms. Qualcomm, based in San Diego, could become a key domestic asset for the company, as Broadcom already has a California co-headquarters in San Jose. No concrete decisions on the matter have yet been reached and it's now unclear what conditions would the semiconductor company be prepared to offer to Qualcomm and what level of a bid would the San Diego, California-based tech giant be prepared to consider. Qualcomm, a major supplier of chips for wireless handsets, was up 14 percent.

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