Broadcom Plans $100b Deal With Chipmaker Qualcomm

Broadcom Ltd. is considering a bid of more than $100 billion for Qualcomm Inc., according to people familiar with the matter, in what would be the biggest-ever takeover of a chipmaker.

Broadcom is speaking to advisers about the potential deal, said the people, who asked not to be identified because talks are private. The offer of about $70 a share would include cash and stock and is likely to be made in the coming days, the people said. A final decision on whether to proceed has not been made, Bloomberg reported.

Qualcomm shares rose as much as 19% in New York in their biggest intraday move since October 2008, after Bloomberg News first reported the takeover plans. They closed up 13% at $61.81, valuing the company at $91 billion. Broadcom rose 5.5%, for a market valuation of about $112 billion.

Representatives for Broadcom and Qualcomm declined to comment.

Broadcom Chief Executive Officer Hock Tan is a voracious acquirer, and he has played a key role in a wave of consolidation engulfing the $300 billion semiconductor industry over the last three years.

Broadcom, created in 2016 when Avago Technologies Ltd. acquired Broadcom Corp. for $37 billion, has built itself from a former Hewlett Packard division into one of the largest chipmakers via a string of purchases. Tan has said he wants more deals, a strategy that could be limited by opposition from US regulators.

Broadcom, a major supplier of iPhone parts that counts Apple among its largest customers, said this week it will return its headquarters to the US from Singapore.

The company already lists San Jose, California, as a corporate co-headquarters.