Trump Blocks Broadcom's Qualcomm Acquisition

Dan Jones
3/12/2018
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The White House issued an order late Monday blocking Broadcom from acquiring Qualcomm for $117 billion.

"The proposed takeover of Qualcomm by the Purchaser [Broadcom] is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited," the White House said in a statement Monday.

The White House imposition shortly follows the annoucement of a CFIUS national security review of the proposed buyout. (See Broadcom Speeds US Return to Strengthen Qualcomm Bid.)

This appears to represent the end of Broadcom's multi-billion dollar bid to buy Qualcomm, which the board of the San Diego-based cellular silicon giant has always resisted.

Meanwhile, Intel is reportedly looking into buying Broadcom. (See Intel Could Bid for Broadcom – WSJ Report.)

— Dan Jones, Mobile Editor, Light Reading

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mendyk
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mendyk,
User Rank: Light Sabre
3/13/2018 | 10:59:02 AM
Globalism
Bloomberg is speculating that Huawei's potential influence over Broadcom is a big reason for this move.
DanJones
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DanJones,
User Rank: Blogger
3/13/2018 | 11:22:07 AM
Re: Globalism
Interesting that this happened so fast, the review was supposed to continue until April.
mendyk
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mendyk,
User Rank: Light Sabre
3/13/2018 | 11:26:14 AM
Re: Globalism
Shoot first. Ask questions later. Or maybe you don't even have to ask questions.
Gabriel Brown
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Gabriel Brown,
User Rank: Light Sabre
3/13/2018 | 12:10:12 PM
Re: Globalism
We had pretty good warning that this proposed deal would be controversial and unlikely to be signed off by the US government.
Gabriel Brown
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Gabriel Brown,
User Rank: Light Sabre
3/13/2018 | 12:08:32 PM
Re: Globalism
I read the Bloomberg piece (the same one, I think). The focus on Huawei was over-done and the link from Broadcom to Huawei appeared concocted.

Obviously, Huawei wants to be more successful in 5G. It's a commerical enterprise first and foremost. But the national security objections, so far as I understand it, were quite a bit broader than one specific compnay. Either Bloomberg knows something it didn't include in the story, or they quickly cobbled together a piece. I saw ZTE mentioned a couple times too.
mendyk
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mendyk,
User Rank: Light Sabre
3/13/2018 | 12:24:41 PM
Re: Globalism
Ex-President Bannon was clear that U.S. economic nationalists consider China the biggest threat. Broadcom isn't based in China, but it's close enough as far as that particular group is concerned. "National security" is a convenient reason for this action, but it may not be the primary reason.
Gabriel Brown
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Gabriel Brown,
User Rank: Light Sabre
3/13/2018 | 12:42:41 PM
Re: Globalism
Coincidentally, I just read Prisoners of Geography, so I should refrain from commenting as I now think I'm a mini expert on geo-politics. Obviously, I am not. But I could figure out that these things play out over millenia.

The book's perspective a little bit "British public school boy", but worth a read neverthless:

https://www.goodreads.com/book/show/25135194-prisoners-of-geography 

Probably technology and geo-politics would be a good subject for a PhD or a career in the commentariat.
DanJones
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DanJones,
User Rank: Blogger
3/13/2018 | 2:14:10 PM
Re: Globalism
Interteresting, thanks!
rocket101
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rocket101,
User Rank: Light Sabre
3/13/2018 | 2:20:42 PM
Re: Globalism
Lets see if Broadcom still relocates to USA, or stays in Singarpore.
DanJones
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DanJones,
User Rank: Blogger
3/13/2018 | 6:15:42 PM
Re: Globalism
They have said it'll be completely relocated by April 3rd so we will indeed see...
DanJones
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DanJones,
User Rank: Blogger
3/14/2018 | 2:23:46 PM
Re: Globalism
Bcom says today they'll still relocate to the US.
gregioffe
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gregioffe,
User Rank: Light Beer
3/13/2018 | 8:08:23 PM
Re: Globalism
Nah, that was too close to home... a) B percieved by current administration as an aggressive firebrand and had to be whipped in line , B) Too many eggs in one strategic basket if B would gobble the Q, C) The area is too sensitive to DoD and future advances (refer to A and B)
mendyk
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mendyk,
User Rank: Light Sabre
3/14/2018 | 9:07:51 AM
Re: Globalism
The beauty part of the "national security" block is that it's almost impossible to refute. Kind of like the "I was afraid for my life" defense that has worked so well in police-involved shootings.
DanJones
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DanJones,
User Rank: Blogger
3/14/2018 | 12:08:02 PM
Re: Globalism
Broadcom says it has formally dropped the bid:

 

https://www.lightreading.com/components/mobile-wireless-components/broadcom-formally-drops-$117b-qualcomm-bid/d/d-id/741416?
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