Broadcom goes after Qualcomm with massive $130B bid

From CNET: Broadcom really, really wants to hook up with Qualcomm.

The San Jose, California, company, which makes chips for everything from cable modems to set-top boxes and digital video recorders, on Monday launched an unsolicited bid for Qualcomm, the world's largest maker of chips and processors for phones, for $70 a share, or $130 billion.

If it goes through, the deal would be one of the biggest tech acquisitions ever.

Qualcomm shares rose 3.5 percent to $64 in premarket trading. Broadcom rose 1.6 percent to $278.05.

A combination of the two would create a chip giant supplying components to a wide array of electronic gadgets found in your home or pocket. The deal marks a surprising turnaround from nearly a decade ago, when the two companies were bitter rivals in the courtroom. At the time, both companies made cellular chips, and Qualcomm ultimately had to pay Broadcom $891 million to settle the dispute.

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