March 21, 2018

President Trump Prohibits Broadcom from Acquiring Qualcomm

13 March 2018, 09:45 | Cesar Cruz

Broadcom Qualcomm takeover blocked by Trump over national security worries

Qualcomm Incorporated - QCOM - Stock Price Today - Zacks

The proposed takeover of Qualcomm by [Broadcom] is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited.

"By exploiting gaps in the existing CFIUS review process", Cornyn said, "potential adversaries, such as China, have been effectively degrading our country's military technological edge by acquiring, and otherwise investing in United States companies".

In an unexpected turn of events, the American president Donald Trump blocks the takeover of chipmaker Qualcomm by Broadcom, for reasons of national security.

"Qualcomm has become well-known to, and trusted by, the USA government", the Treasury Department said in a March 6 letter.

Broadcom has yet to comment on the CFIUS order.

While its operating headquarters are in California, the company reincorporated in Singapore a few years ago.

The committee told lawyers for the companies in a Sunday letter that their investigation into Broadcom's bid s expected to "close soon" and that "so far", the deal would propose a national security risk, if the deal were to go through. Before waiting for an actual deal, CFIUS opened an investigation to review the risks to national security.

Former First Round Pick Traded To Patriots
NFL Network's Ian Rapaport is reporting that the Packers will receive Browns starting quarterback Deshaun Kizer in the trade. With Gordon on the outside, Landry in the slot and Taylor behind center, the Browns have the makings of a potent attack.

Broadcom had been pursuing San Diego-based Qualcomm for about four months. The final tally on Broadcom's nominees was postponed by U.S. government order, but an initial count of more than half the votes cast showed Mollenkopf getting the second-lowest number of votes among the nominees for the board. "They would just have to buy Huawei (equipment)".

More notable recent QUALCOMM Incorporated (NASDAQ:QCOM) news were published by: which released: "Better Buy: Intel Corporation vs. Qualcomm Inc." on March 07, 2018, also with their article: "Broadcom promises on security, Qualcomm revamps board" published on March 09, 2018, published: "Podcast: Qualcomm-Broadcom, Gaming Industry Meets Trump, Machine Learning Software" on March 11, 2018.

Broadcom contends it is already a US company "in all important respects" and has won CFIUS approval for previous acquisitions.

"Qualcomm's work is too important to our national security to let it fall into the hands of a foreign company - and in a hostile takeover no less", said Sen. The proposed deal faced much scrutiny both within and outside of the industry, and with the White House announcement the deal is effectively dead.

If Qualcomm's "technological leadership" diminishes, Mir said in his March 5 letter, Chinese tech companies stand to gain in the race to develop 5G. But Broadcom CEO Hock Tan's real goal was apparently to smooth the road for its hoped-for acquisition of Qualcomm. Qualcomm said it would challenge that fine.

So it would be surprising if CFIUS's authority was overturned at this stage, said Brian Fleming, a lawyer with Miller & Chevalier and former Assistant Attorney General for National Security who managed CFIUS matters for the Department of Justice.

While Broadcom shares were holding steady in the wake of the announcement, investors were less enthusiastic about Qualcomm's chances, and shares dropped 4.5 per cent after hours.

Other News

Trending Now

Ronaldo leads Real Madrid to 2-1 win over Eibar
Overlooked for Real's two biggest games of the season so far, the indication is Zidane does not trust Bale when it matters most . Ronaldo netted a score in each half of the La Liga victory Saturday at Ipurua Municipal Stadium in Eibar , Spain.

Hearthstone kicks off the Year of the Raven with The Witchwood expansion
Buying into the 50 pack pre-order of The Witchwood will grant you an additional 20 packs in addition to the exclusive card back. The Witchwood will also see the addition of the Monster Hunt mode, which is similar to the Dungeon Run from Kobolds & Catacombs.

North Carolina holds off Duke to advance to ACC title game
The Cavaliers have been that this season, going 17-1 in the ACC and sweeping their three games in the conference tournament. It's a one-and-done format that often isn't fair and has proven to not be the best evaluator of how good or bad a coach is.

Yankees agree to deal with Neil Walker
After finishing one win away from the World Series last season, the Yankees appear to be all-in on another run in 2018. This may not be the last deal of the off-season as the Yankees are still scouting the market for a starting pitcher.

Adrian Peterson could return to Cardinals after release
The network reports that Peterson would be owed a $750,000 bonus on Friday if he were still with the Cardinals. The 2012 NFL MVP sits second among active rushers in yards and attempts, behind Frank Gore.

Sean Smith Will Plead Guilty to Assault Charge; Cut by Raiders
He said he was only on the field in certain packages early in the season and could not get into the flow of a game as a result. Smith was set to make $8.25 million in base salary in 2018, and his release comes with no dead money against Oakland's cap.

Djokovic rues shock Indian Wells exit
Djokovic scrambled to win the second set but looked rusty on stadium court, making 62 unforced errors compared to 29 for Daniel. South African seventh seed Kevin Anderson also prevailed in his second round match, 7-5 6-4 over Russian Evgeny Donskoy.

Russia: Putin criticised for Jewish election meddling comments
Putin then made his way toward the Olympic venue with International Olympic Committee officials to watch the opening ceremony. Former Israeli ambassador to Russia Zvi Magen said given the circumstances, this policy was wise.

Barcelona star wants Neymar back
The Brazil striker is now out with a foot fracture and facing a race against time to be fit for his national side at the World Cup.

Eddy Cue: Apple Music reaches 38 million subscribers
South Africans already have a wide choice of streaming options, from Google Play Music to Apple Music, and Simfy Africa to Deezer. The big question, though, remains whether or not Apple Music will ever be able to eclipse Spotify .