QCOM in November rejected Broadcom’ s $70 a share cash-and-stock bid that valued the company at $103 billion. The new offer values the company at $82 per share – a premium of 24% over Qualcomm’s close on Friday.
The move comes ahead of a Qualcomm shareholder meeting scheduled for March 6. Broadcom wants to replace Qualcomm’s board of directors with a slate of its own.
Last week, InvestorPlace contributor Luke Lango wrote that Broadcom’s hostile pursuit of the chipmaker “will end favorably for owners of QCOM stock.” “Consequently, even though QCOM has simply been range bound for the past several months, I think this is a name you stick with into the March 6 annual meeting.”
The semiconductor provider reported revenue of $6.04 billion, ahead of the $5.93 billion that analysts polled by Thomson Reuters were calling for. Adjusted earnings were 98 cents per share, beating the 91 cents per share that Thomson Reuters predicted.
Qualcomm’s operating profit for the first quarter of fiscal 2018 fell 96% year-over-year to break even as Apple Inc. (NASDAQ:AAPL) withheld royalty payments. The dispute between the two companies resulted in Qualcomm not receiving any license revenues from Apple during its first quarter, a figure that came in at $740 million in the year-ago quarter.