One week after Broadcom offered to buy Qualcomm for $130 billion, Qualcomm has issued its response.
Qualcomm today said that its board of directors "unanimously rejects" the acquisition proposal from Broadcom. Qualcomm CEO Paul Jacobs added that the board of directors feels that Broadcom's offer "significantly undervalues" Qualcomm.
Here's Jacobs' full statement:
“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."
Tom Horton, the Presiding Director for Qualcomm Inc., also pointed to the "significant regulatory uncertainty" as a reason for rejecting Broadcom's offer.
It's unclear what'll happen next between Broadcom and Qualcomm. This could be the end of it, or Broadcom could come back with another offer that it thinks Qualcomm will find more attractive. We'll just have to wait and see.