Broadcom’s months-long attempt to takeover Qualcomm is officially over following yesterday’s intervention by the White House. The foreign chipmaker today announced that it’s complying with an order issued by President Trump that cited national security in blocking the deal.
Based in Singapore, Broadcom last year made an unsolicited bid north of $100 billion to purchase Qualcomm. Rejected by the American chipmaker’s board, Broadcom looked to conduct a hostile takeover.
The merger would have created a behemoth force in semiconductor space with wide-ranging industry implications. So much so, that Intel was rumored to be looking into acquiring Broadcom to prevent the Qualcomm deal.
However, at the end of the day, the White House cited national security reasons in scuttling the deal, namely not wanting Qualcomm to become a foreign-owned company.
Other critics of the deal noted that Broadcom’s history of prioritizing cost cutting would harm innovation and technology moving forward. This includes the next-generation 5G technology. Google was reportedly worried about the prospects of the deal in regards to chipsets.
In a statement, Broadcom today noted that its complying with the order, and dropping its slate of candidates for Qualcomm’s board of directors. Interestingly, the company is continuing with a plan to move its headquarters to the U.S., a move widely seen as trying to appease officials.