WASHINGTON, DC, USA – Qualcomm on Monday, November 13, rejected a $130 billion bid from fellow computer chip maker Broadcom, setting the stage for a potentially bitter fight for control of a key player in the world of mobile technology.
The proposal "significantly undervalues Qualcomm relative to the company's leadership position in mobile technology and our future growth prospects," Paul Jacobs, Qualcomm's executive chairman, said in a statement following last week's offer which would be the largest ever in the technology sector.
Singapore-based Broadcom made the offer to consolidate two major players in the booming sector fueled by growth in smartphones and other connected devices.
Steve Mollenkopf, Qualcomm's chief executive, said in the statement the California company remains confident about its future on its own.
"No company is better positioned in mobile, IoT (internet of things), automotive, edge computing and networking within the semiconductor industry," he said.
"We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G," he said, referring to the fifth generation wireless networks in the works.
Broadcom responded to the announcement by saying it "remains fully committed" to the planned tie-up.
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