(KGTV) - San Diego-based Qualcomm announced Monday that it is going to reject a $103 billion purchase offer made by rival Broadcom.
Just last week, Broadcom issued a note to investors in which they announced a "proposal to acquire all of the outstanding shares of" Qualcomm "for per share consideration of $70.00 in cash and stock."
However, Qualcomm's Board of Directors unanimously rejected the proposal.
In a statement Monday morning, Qualcomm Executive Chairman Paul Jacobs said, "It is the Board's unanimous belief that Broadcom's proposal significantly undervalues Qualcomm relative to the Company's leadership position in mobile technology and our future growth prospects.
CEO Steven Mollenkopf added, "No company is better positioned in mobile, IoT, automotive, edge computing and networking within the semiconductor industry. We are confident in our ability to create significant additional value for our stockholders as we continue our growth in these attractive segments and lead the transition to 5G."
A purchase of Qualcomm would have made Broadcom the third-largest chip-maker, behind Intel Corp. and Samsung Electronics Co., Bloomberg reported. The combined business would become the default provider of a set of components needed to build each of the more than a billion smartphones sold every year, according to Bloomberg.
Like Qualcomm, Broadcom is a major supplier of parts of Apple products. Qualcomm and Apple have been embroiled in a court dispute over royalties.
The impact in San Diego of a takeover -- which would end up being the largest ever in the electronics industry -- wasn't immediately clear, but it could be tremendous. Qualcomm is one of the few major corporations with a global reach to be headquartered in a city known mainly for tourism, and smaller defense and life sciences firms.