However, WSJ's sources noted that the offer is not guaranteed. The firm's quarterly revenue was up 17.1% compared to the same quarter last year. equities analysts predict that Broadcom Ltd will post 17.41 earnings per share for the current fiscal year. "We are in the midst of massive consolidation in the semiconductor industry". Apple, locked in a legal dispute with Qualcomm over licensing fees, has been working to strip Qualcomm chips from future devices.
A new owner could draw a line under the escalating conflict, shutting down Intel's most promising avenue towards market share in the mobile space.
That deal was, of course, an order of magnitude smaller than the snaffling of Qualcomm.
If Broadcom buys Qualcomm, Intel would face a much bigger competitor, almost equal to itself in market heft.
However, if Broadcom is successfully able to acquire the largest chip manufacturer of mobile SoCs and LTE modems, then it would become a problem for Intel in the long run. Intel past year bought a company called Mobileye, which develops sensors for autonomous auto features. Broadcom sent a letter to Congress saying that the takeover would not harm national security, and Qualcomm appointed an independent chairman.
The fallout has left the deal of buyout open for everyone.
Last week it also pledged to make the USA the leader in 5G through investment, including launching a new $1.5 billion fund to train and educate the next generation of engineers in the United States.
The company is in the "final stages of redomiciling" and insists that "U.S. national security concerns are not a risk to closing, as Broadcom never plans to acquire Qualcomm before it completes redomiciliation".
Broadcom has repeatedly denied that the Qualcomm proposal poses a threat to national security. However, it is not clear what rules Broadcom would have to follow if it goes ahead with announced plans to move its headquarters to the United States. The move could minimize CFIUS' power, with the body regulating foreign investments.
Today, Broadcom said that it supports the process of CFIUS and reiterated that the committee has given a green chit regarding its takeover of Brocade in November 2017.
The company argued that its move to redomicile to the USA has been "a matter of public record since last November" and follows CEO Hock Tan's visit with President Donald Trump Nov. 2.
In related news, insider Kirsten M. Spears sold 199 shares of the company's stock in a transaction dated Friday, March 2nd.
Broadcom's stock has lost 1.9% over the past three months and Qualcomm shares have shed 2.8%, while the S&P 500 has gained 4.6%. In that meeting, shareholders will also vote for Broadcom's slate of six nominees for Qualcomm's 11-member board.
Broadcom also has pledged lead in 5G wireless development and to step up its spending on research and development. The nation's Ministry of Commerce (MOFCOM) is still reviewing the acquisition, and recent moves by the USA government to impose trade tarrifs on Chinese steel and aluminum could complicate matters.