Broadcom announced on Wednesday that it has officially withdrawn its $117 billion bid to acquire Qualcomm. In a related move, Qualcomm also decided not to continue its fight for board representation. At the next annual general meeting, Broadcom will no longer nominate its six candidates for the Qualcomm board of directors.
Despite this setback, Broadcom has not changed its plan to relocate its headquarters from Singapore to the United States. The company's decision to abandon the acquisition marks the end of its attempt to take over Qualcomm, which had been blocked by U.S. President Donald Trump earlier in the week. The president issued an executive order citing national security concerns as the reason for blocking the deal.
Although Broadcom had made multiple attempts to negotiate with both Qualcomm and the U.S. government, the acquisition ultimately failed to gain approval. On Wednesday morning local time, Broadcom released a statement expressing disappointment over the outcome but confirmed that it would comply with the Trump administration’s ban. The company also mentioned that the relocation of its headquarters will proceed as planned, with a special shareholders’ meeting scheduled for March 23.
Bloomberg reported that the rejection of the acquisition came after strong opposition from the U.S. government, raising questions about how Broadcom and Qualcomm will move forward. Analysts are now watching closely to see how the situation will evolve, especially given the interest of other major U.S. companies in the semiconductor industry.
Brian Colello, a stock analyst at Morningstar, noted that the previous offer of $79 per share by Broadcom could still support Qualcomm’s stock price, which closed at $59.70 on the day before the announcement. He also suggested that Broadcom is likely to continue searching for new merger and acquisition opportunities within the chip sector to expand its market presence and drive future growth.
Additionally, reports from the Wall Street Journal hinted at the possibility of Intel acquiring Broadcom, as the company was concerned about the competitive impact of a Broadcom-Qualcomm merger. However, with the deal now off the table, Intel’s interest in Broadcom may have diminished. Colello pointed out that the U.S. government’s actions have "cleaned up the mess" for Intel, suggesting that the chip giant may no longer need to pursue Broadcom.
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