Crucial Qualcomm vote delayed by United States probe into Broadcom bid

  • Crucial Qualcomm vote delayed by United States probe into Broadcom bid

Crucial Qualcomm vote delayed by United States probe into Broadcom bid

Any belief that a collaborated Broadcom-Qualcomm would cede leadership or slash funding to 5G is entirely unfounded.

"The bottom line is that a combined, American Broadcom-Qualcomm will be a more focused and stronger champion for sustained United States leadership in 5G than a standalone Qualcomm, an outcome that strongly supports America's national security interests", Broadcom stated in its letter. That's what the national security concerns were by the Commitee on Foreign Investment in the US (Cfuis) were over, as they said that Broadcom is trying to inject new directors into Qualcomm through this acquisition that "could pose a risk to the national security of the US". Any dispositions of the assets to foreign purchasers would be subject to CFIUS review.

Broadcom also promised to create a $1.5 billion fund with a focus on innovation to train and educate the next generation of US engineers to ensure the country's lead in future wireless technology.

Qualcomm will hold a vote for its investors to decide on Broadcom's nominations to its board on the 5th April, which will also serve as a referendum on an offer that is worth $117 billion (around £84bn). Qualcomm's argument of its anticompetitive licensing practices needing to fund a robust R&D effort has no truth.

Broadcom said that ninety percent of Broadcom's shareholders are in the US and they are largely owned by the same United States institutional investors that own Qualcomm.

With this week's tit-for-tat with Broadcom surrounding a new investigation by a Treasury Department agency over its acquisition campaign, it should be noted that Qualcomm has also questioned if its counterpart would run its operation into the ground - Broadcom CEO Hock Tan's profit regime is known to be an especially aggressive one.

Broadcom is presently managed from its headquarters in San Jose, California. We are now in the final stages of redomiciling to the United States, and that process will be complete no later than May 6, 2018.