Trump signs Presidential Order to block Broadcom-Qualcomm takeover

null

The Qualcomm / Broadcom proposed takeover appears to have reached an end after a dramatic intervention from the president of the United States.

President Donald Trump has issued a Presidential Order prohibiting the deal under the interest of "protecting national security". 

The order also disqualifies all of Singapore-based Broadcom’s director nominees from being elected as Qualcomm's directors, and demands Qualcomm stakeholders to reconvene as soon as possible.

The story first began in December 2017, when Broadcom first announced that it wanted to buy its chipmaking rival, making a series of increasing bids. In the meantime, Qualcomm also bought NXP., which led to the value of the former devcreasing, throwing the deal into question. 

Analysts were saying that the acquisition raises Qualcomm's overall value, which means Broadcom would have to pay more to acquire it, which means it might walk away from the deal completely, which consequently had Qualcomm lose value.

Broadcom has yet to respond to the order, but the news raises the possibility of another, bigger deal, involving Intel, after reports surfaced earlier this week that Chipzilla was considering buying Broadcom.

Image Credit: Jejim / Shutterstock