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Qualcomm takeover bid halted by US government

(Image credit: Image Credit: Jejim / Shutterstock)

As if the Broadcom / Qualcomm deal didn't have enough drama of its own, the American Committee on Foreign Investment (CFIUS) joined the fray and effectively stopped any possible takeovers, the media are reporting this Monday.

So what exactly happened? CFIUS asked Qualcomm to delay the Broadcom takeover vote which was supposed to happen on Tuesday. Broadcom cried foul, saying this latest turn of events is an “engagement theatre (opens in new tab)”, aimed at changing the will of Qualcomm stockholders.

"Broadcom was informed on Sunday night that on January 29, 2018, Qualcomm secretly filed a voluntary request with CFIUS to initiate an investigation, resulting in a delay of Qualcomm's Annual Meeting 48 hours before it was to take place,” it said in the statement.

“This was a blatant, desperate act by Qualcomm to entrench its incumbent board of directors and prevent its own stockholders from voting for Broadcom's independent director nominees."

CFIUS believes this deal might hurt US national security interests.

The Broadcom / Qualcomm deal has been making headlines for quite some time now. First, Broadcom offered Qualcomm a takeover deal worth $103 billion. Qualcomm rejected, saying the price was way below decent. The offer has since been raised, but then dropped again after Qualcomm bought NXP.

Image Credit: Jejim / Shutterstock

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.