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Qualcomm ups NXP bid in blow to Broadcom deal

(Image credit: Image Credit: Jejim / Shutterstock)

Qualcomm has unveiled its latest bid to acquire NXP Semiconductors, leading to yet more speculation about the possible effect this may have on its own deal with Broadcom

The San Diego chipmaker has revealed a $44 billion offer for NXP as it looks to strengthen its own market position and fend off the hostile takeover from its fellow hardware firm..

According to Reuters, this acquisition is seen as a move of defiance against Broadcom's attempts at buying Qualcomm. It is supposed to raise the value of Qualcomm as a whole.

But after the acquisition, the price of Qualcomm's shares has actually gone down, as investors fear this acquisition means the Broadcom deal is bound to fail.

Qualcomm’s presiding board director Tom Horton said this deal means more value for the company’s shareholders, regardless of what happens with the Broadcom deal.

“It makes Qualcomm stronger and more profitable and diversified if there is no deal with Broadcom, and if we do decide to pursue a sale the same is true, more value would accrue to the Qualcomm shareholders,” Horton said.

Earlier this month, Qualcomm has declined Broadcom’s offer, saying it severely undervalues the company. However, it did add that it is willing to negotiate the takeover further.

Image Credit: Jejim / Shutterstock

Sead Fadilpašić

Sead is a freelance journalist with more than 15 years of experience in writing various types of content, from blogs, whitepapers, and reviews to ebooks, and many more, across sites including Al Jazeera Balkans, TechRadar Pro, IT Pro Portal, and CryptoNews.