Broadcom has raised its offer to merge with Qualcomm from $105 billion to $121 billion in its "best and final offer", making this the biggest tech deal ever (if it goes through):
Broadcom Ltd. (AVGO +0.31%) sweetened its offer for Qualcomm Inc. (QCOM -4.34%) to more than $121 billion and threatened to walk away if the parties don’t come to an agreement by early March, dialing up the pressure in its bid to take over the chip maker in what would be the largest technology deal ever.
Combined, the two companies would form the No. 3 chip maker by revenue, behind Intel Corp. and Samsung Electronics Co. , a position that could give antitrust enforcers pause. A merger would face steep challenges from international regulators, antitrust watchers say, particularly over the companies’ dominant positions in parts critical to smartphones.
Qualcomm initially rejected the first offer because it believed that it "dramatically undervalued the company and would face significant regulatory and financial challenges."
Qualcomm in a later letter to shareholders emphasized the difficulty of getting the proposed merger past international regulators regardless of Broadcom’s ultimate offer, saying it was “highly doubtful” the transaction would be approved.
Beyond that, there are also other issues that can hinder a deal from being reached (see source).
Do you think that the deal will go through? Personally I think that there are too many contingencies but I would love to know what you think.
Source: WSJ
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