Broadcom is planning to make an unsolicited bid for San Diego chipmaker Qualcomm, according to various reports. The offer, which is expected to be huge, could be made as early as this weekend.
Bloomberg, which first reported the deal, said that Broadcom is talking to advisors about a potential buyout but that no final decisions have been made, and there’s no guarantee the deal will move ahead.
Qualcomm, which is known for its leadership in making chipsets for mobile phones, has a market value of nearly $90 billion. The company’s stock surged 14 percent to $62.58 per share on news of the potential deal.
The rumor comes just one day after Broadcom announced plans to change the nationality of its corporate structure from Singapore to the United States. The plan was announced by President Donald Trump in an Oval Office press conference yesterday as part of a White House visit by Broadcom CEO Hock Tan.
Qualcomm has been under fire lately. The company has worked with Apple for a decade and made chipsets for its iconic iPhone. However, the two companies have been embroiled in a lawsuit after Apple accused Qualcomm of using its market dominance to charge extremely high patent royalties and keep competitors away. Apple has recently signaled that it may be looking at other chipset providers for future versions of the iPhone.