The popular chipset makers Broadcom reportedly planning to acquire its fellow chipmaker Qualcomm for $100 billion with a capital B.
According to Bloomberg, Broadcom is currently in talks with the advisors to know the best possible bid and the deal and it can be made official in next few days. This deal would be beneficial for both the companies as Broadcom is currently the biggest Wi-Fi chip makers, and Qualcomm is the largest maker of Modems.
There would also be some synergy with the bid since both the companies make chips that helps device connect with one another and hence would give a push to the Internet of Things as well which is not yet being used up to its full potential. If the deal turns out to be successful, such a bid would give Broadcom significant leverage over components like Wi-Fi and cellular modem chips.
Also, the $100 billion buyouts would be the largest purchase of a chipmaker, so Broadcom and Qualcomm will need to make strong cases for such a purchase. We will be keeping an eye for the announcement to be made official so stay tuned with us.
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Source: Bloomberg
