One of the largest deals in United States business history could be afoot. Broadcom has made a $130 billion unsolicited bid to buy Qualcomm.
If the deal goes through, it would combine a pair of chip-making behemoths in Wi-Fi and wireless. Broadcom primarily makes chips for modems, Wi-Fi, switches and routers...while Qualcomm specializes in mobile chips for smartphones.
As Hock Tan, Broadcom's CEO, said in a statement: "This complementary transaction will position the combined company as a global communications leader with an impressive portfolio of technologies and products."
The proposed deal comes as major U.S wireless carriers prepare to unleash 5G technology, which relies on wired and wireless technology working together.
it also comes days after President Trump announced that Broadcom will move its legal headquarters back to the U.S. It was previously incorporated in Singapore.
5G is the next generation of mobile technology, promising blistering download speeds for consumers. Their appetite for more bandwidth has spurred a race in the telecommunications industry to build the networks and infrastructure - including chips - to support it. So the deal makes a lot of strategic sense to a lot of tech experts.
SPRINT - T-MOBILE DEAL CALLED OFF
While a deal between Broadcom and Qualcomm could be on the horizon, the deal between Sprint and T-Mobile is off. The struggling carriers called off their corporate marriage. And, like a lot of breakups these days, irreconcilable differences are the reason.
It seems the wireless carriers couldn't find a way to make a merger work that would benefit both customers and shareholders.
It has been years since the two companies began talking merger. But they now say such talk is dead for the foreseeable future. T-Mobile and Sprint are the third- and fourth-largest wireless carriers in the U.S., respectively. But they lag behind AT&T and Verizon, the nation's top two carriers.